Invast Securities Operating Revenue & Deposited Margin Down

Invast Securities Co., Ltd has published on Thursday its business metrics for the month of July. The company reported a drop across its two main metrics, operating revenue and total amount of deposited margin.

Operating revenue for the online securities brokerage was ¥386 million for the month of July. This figure is lower than the ¥439 operating revenue recorded in June by 12.1 percent. 

However, year on year, operating revenue is higher by 2.4 percent.

Although lower than June, July’s operating revenue is still stronger than that achieved in April and May 2020. In fact, July’s operating revenue is the third-strongest in 2020, behind March and then June.

Invast Securities: Deposited Margin Down

The total amount of deposited margin posted by the Japanese broker for July was ¥71.55 billion. This figure translates to a drop of 0.87 percent against June’s deposited margin of ¥72.18 billion.

Against July of last year, however, last month’s deposited margin has decreased by 12.6 percent.

Brokers across the world have witnessed a surge in trading activity. This was driven by heightened volatility in response to the COVID-19 pandemic. This volatility ramped up towards the end of February and heightened in March.

During the third month of the year, many trading providers reported record trading volumes. They also reported trading activity and other associated metrics. 

Since then, as volatility tapered off, volumes have been steadily declining.

June Spike in Volumes Short-lived

The month of June provided an unexpected boost for many trading providers. Typically, the summer months in the northern hemisphere produce dull trading volumes as traders are away on vacation.

Rising COVID-19 cases and people trapped in lockdown seemed to provide a welcome boost to declining trading volumes in June. Nonetheless, it seems the spike did not last long, as many brokers have once again reported drops in trading volumes.