Monex reiterates plans for APAC expansion, Chinese JV marks progress

Maria Nikolova

Monex says it will commence online securities business in Australia in the July-September quarter, making use of the systems of its Hong Kong brokerage subsidiary.

Monex Group, Inc. (TYO:8698), an online trading services provider with major operations in Japan, the US and Hong Kong, has earlier today posted its financial report for the quarter to June 30, 2017, with our attention pinned on any strategic announcements that the broker had to make, especially after the report for the previous quarter contained plans about APAC expansion.

Today’s report reiterates Monex’s plans to grow its operations in the Asia Pacific region. The launch of Monex’s online securities business in Australia is now scheduled for the second quarter of the financial year to March 31, 2018 – that is, the July-September 2017 quarter.

The business will be operated by Monex Securities Australia Pty Ltd, and, according to the latest updates, it will use the systems of Monex’s brokerage subsidiary based in Hong Kong. The aim of this is to “lighten the infrastructure and offer cost- competitive services”.

The broker aims to establish a certain business model in Australia, which can then be used for expansion into other areas.

The Hong Kong subsidiary of the broker – Monex Boom Securities (HK) registered a loss due to one-time financial expenses (a loan). Excluding financial expenses, however, revenues were up 21% quarter on quarter, whereas net financial income rose 1% quarter on quarter.

Monex also operates in China via a joint venture, providing support and technology services. This JV registered a profit in the April-June 2017 period, the first quarterly profit for Monex’s PRC business since its establishment.

The APAC region is immensely attractive for the Forex industry and for the online trading industry in general. This stance has been shared by executives attending the latest FinanceFeeds Sydney Cup event.

Leading online trading companies, like CMC Markets Plc (LON:CMCX) have made decisive steps to expand their presence in Australia. In its most recent interim management statement, CMC Markets has underlined the importance of this market for its business and has noted that its deal with Australia and New Zealand Banking Group Ltd (ANZ), sealed in March this year, is progressing according to plans. Thanks to the partnership, more than 250,000 additional active stockbroking clients will be brought to CMC’s existing active stockbroking client base, which includes around 50,000 such clients in Australia.

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