Invast Securities Sees MoM Drop in Business Metrics in July

Invast Securities Co., Ltd has published business metrics for the month of July this Thursday. Unsurprisingly, the online securities brokerage reported a drop across its two main metrics – operating revenue and total amount of deposited margin.

In particular, operating revenue for the Japanese brokerage was ¥386 million for the month of July. This is lower than the ¥439 operating revenue recorded in June by 12.1 per cent. Year on year, however, operating revenue is higher by 2.4 per cent.

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Although lower than June, July’s operating revenue is still stronger than that achieved in April and May of this year. In fact, July’s operating revenue is the third-strongest this year, behind March and then June.

Deposited margin down on Invast Securities

The total amount of deposited margin posted by Invast Securities for July was ¥71.55 billion. This translates to a fall of 0.87 per cent against June’s deposited margin of ¥72.18 billion. Against July of 2019, however, last month’s deposited margin has declined by 12.6 per cent.

Brokers across the world have witnessed a surge in trading activity, driven by heightened volatility in response to the coronavirus pandemic. This volatility ramped up towards the end of February and peaked in March.

During the third month of the year many trading providers reported record trading volumes, trading activity and other associated metrics. Since then, volumes have been steadily declining as volatility tapers off.

June spike in volumes appears short-lived

However, as Finance Magnates reported, the month of June provided an unexpected boost for many trading providers. Typically, the summer months in the northern hemisphere produce lacklustre trading volumes as traders go away on vacation.

Increasing COVID-19 cases and people being trapped in lockdown and unable to travel seemed to provide a welcome boost to declining trading volumes in June. Nonetheless, it seems the spike was short-lived, as many brokers have once again reported drops in trading volumes. 

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