Invast Securities Co Ltd has recently published its business metrics for July of 2020, doing so on Thursday. As one would expect, the online securities brokerage reported a drop across two of its main metrics: Total amount of deposited margin, as well as operating revenue.
High Revenues, But Less Than Previous
The Japanese brokerage recorded an operating revenue of ¥386 million for the month of July. This stands as 12.1% less than the month prior, where the brokerage recorded operating revenues of ¥439 million. However, things don’t look so bad when viewed year-over-year, as the operating revenue is 2.4% higher than in July of 2019’s.
While June’s operating revenue was higher, July’s still stands as stranger than the operating revenues recording in May and April of this year. As it stands, July’s operating revenue makes it the third-strongest month of the year, standing behind June. The top-ranked month for operating revenue for 2020 had been recorded in March.
Brokers Finding Benefit From COVID-19
Invast Securities had recorded the total amount of deposited margin for July at ¥71.55 billion. This stands at about 0.87% less than what June’s deposited margin was, standing at ¥72.18 billion. However, when viewed year-over-year, the drop is a bit more stark, as it had declined by 12.6% when compared to July of 2019.
Brokers all across the world had experienced massive influxes of trading activities these past few months. This activity spike was caused thanks to the COVID-19 pandemic, and the subsequent market volatility that it caused. The volatility started to occur at the end of February of 2020, and managed to hit its peak in March.
March saw many a trading provider report record numbers in trading activity, trading volumes, as well as other forms of metrics. As the volatility starts to stabilize, however, these volumes have been steadily declining.
Things Are Calming Down, Trade Volumes Included
The amusing part is, many trading providers found a rather unexpected boost for June, in particular, Summer months in the northern hemisphere typically promise lackluster trading for brokers, as most traders go away on vacation and don’t want to bring work with them.
With the increasing number of cases of COVID-19 coupled alongside people being forced to stay at home due to lockdown, many have been unable to travel. This, by a strange twist of fate, meant that the typically-declining volumes of June saw a surprising boost. It should be noted, however, that many brokers have started to report that these trading volumes have begun to drop, as volatility and the COVID-19 crisis slowly, but surely, gets worked through.