Monex to develop overseas foreign exchange margin trading business

JIJI

Monex Group Inc. Chairman and Chief Executive Officer Oki Matsumoto says the Internet-based broker plans to develop markets abroad for foreign exchange margin trading.

Matsumoto said in a recent interview that the currency margin trading market has matured in Japan, but “there is still room for growth in Asia and Europe.”

Brokerage services for the margin trading are Monex’s second-largest revenue source after those for stock trading.

Pointing to a series of insider trading scandals at major Japanese brokerages, he expressed concern that individual investors could be scared away.

“We have to generate a movement to improve the securities industry from the individual investor’s standpoint,” Matsumoto said.

He said Monex plans to propose ways to revitalize the securities market and foster individual investors together with about 10 other brokerage firms whose customers are mainly individuals, including online brokers.

He noted that the number of people who buy shares has decreased substantially compared with 10 or 20 years ago, partly due to dissolution of cross shareholdings between banks and companies and declines in pension assets under management on the back of the graying society.

He criticized the government for being “nonresponsive” to the situation. “The government has taken no measures to allow individuals to buy shares more easily,” he said.