| LONDON, Sept 5
LONDON, Sept 5 Foreign exchange trading through
online retail brokers fell by 7 percent in the second quarter of
2016, with a boom in sterling trading around June's Brexit vote
not enough to fuel expansion of one of the currency world's few
recent drivers of growth.
The data from industry researchers Finance Magnates Business
Intelligence (www.financemagnates.com) follows the three-yearly
survey by the Bank for International Settlements, which last
week showed the world's biggest financial market contracting for
the first time since 2001.
Previously viewed as a sideshow to the trading between banks
and big investment and pension funds that forms the core of the
$5 trillion a day global market in currencies, the retail sector
has grown steadily in the last three years.
The retreat in wholesale volumes has also made retail
accounts a larger part of overall market activity, and trading
had risen sharply in both quarterly and annual terms at the
start of this year.
In the second quarter, volumes fell to the equivalent of
$335 billion a day, compared to $364 billion in the first
quarter but up from $318 billion a day a year ago.
Data and estimates, none of which have been checked by
Reuters, showed trading down at 14 of the top 15 brokers
globally. The exception was Denmark's Saxo Bank, where monthly
volumes inched up to $259 billion from $257 billion in the first
Two Asia-focused brokers, GMO Click and DMM.com, continued
to lead the website's rankings with monthly volumes more than
double those of their nearest competitors. They were down 9 and
15 percent respectively on the quarter.
Daily trade in Japan -- the biggest market for small
leveraged bets on currency movements from non-institutional
players -- fell to $163 billion a day from $189 billion in the
Japan-based GMO saw trades of $879 billion a month, down
from $961 billion, still roughly triple that of the biggest U.S.
and European brokers.
Outside Japan, U.S.-based FXCM was the leader by
volume at $279 billion a month. U.S.-based Gain Capital
saw volumes fall to $237 billion a month from $287 billion in
the first quarter.
(Editing by Catherine Evans)