Monex Group shrinking commissions: TradeStation 100 jobs cut


July 29, AtoZForex – Due to the decrease of trading volumes, the Japanese brokerage Monex Group has cut another round of employees, this time in its U.S. TradeStation business unit. The first round of terminations took place in April 2016, when 40 people were fired. Whereas, another round of jobs cut took place over recently, when another 60 employees got dismissed.

Following a difficult quarter, Monex Group disclosed that their net profit dropped to $2.5 million. This marks a 78 percent lower profit, based on the year on year (YoY) performance. A total of $101 million, a number which declined by 17.9 per cent YoY. These are the lowest quarterly results for the company, since the results of the first quarter of fiscal 2015 (between the 1st of April and the 30th of June 2014).

Monex Group shrinking commissions in Japan

To prevent Monex Group shrinking commissions in the Japanese unit, the company released TradeStation platform in Japan several months ago. The feedback received from the existing clients was positive, giving the company opportunities to obtain new clients. However, the deployment of the new platform didn’t really help the company to increase the commissions of the Japanese unit. Due to the decline in the trading volumes, which was caused by the decrease in value of Japanese shares, the revenue dropped by 7%.

Decline in the Markets

Referring to the U.S. market, the revenues coming from commissions have declined by 5%. Furthermore, the net loss of Monex Group amounted to ¥398 million in the fourth quarter of fiscal 2016. Additionally, there was an expense registered by the company of ¥145 million when it sold its U.S. business unit to OANDA.

In regards to the Chinese revenues of Monex, the company experienced a loss amounting to  ¥11 million. This is almost twice as high as the result of the previous quarter when the company booked a net loss of ¥5 million. Talking about the Hong Kong market, revenues from commissions for the stock brokerage reduced by 13 per cent because of the decreasing activity on the Hong Kong stock market. However, the company’s net financial income raised by 10 per cent (in HKD terms) due to the growth of margin lending transactions.

Having summed up these performance results of Monex Group, it is likely that the decline in revenues has a direct impact on the recent jobs cut at the US TradeStation unit. In an attempt to gain more information on the case, AtoZForex has reached out the US TradeStation branch. However, at the moment the communication department of TradeStation in the US has declined to provide additional comments, in regards to the recent jobs cut.

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