TradeStation and Crypto Loss Pushes Monex Revenue Lower

Monex
Group, a Japan-based financial services company, released its financial results
for the third quarter of the fiscal year 2023 on Monday. In the nine-month
period between April and December 2022, the company’s operating revenue and profit
recorded a visible slump with the contribution of the crypto and TradeStation business.

According
to the recent press release, the overall operating income stood at ¥69,691
million ($16,127 million), falling by 15.8% year-over-year (YoY) from ¥58,672 million.
The quarterly net profit slump was even more painful and came in at 85.2% YoY,
with the final number falling to ¥1,853 million.

In addition, the basic earnings per share fell significantly from ¥48.19
reported for 2021 to ¥7.27. On top of that, Monex shares on the Tokyo Stock Exchange
fell by more than 40% in 2022, sliding along with other technology companies
and investment service providers. However, the start of 2023 brings an
optimistic rebound.

In its report, Monex distinguishes three main segments of its business:
the Japanese segment, which provides stable profits, the US segment
(TradeStation) where a significant improvement in earnings was seen in 2022,
and the crypto assets segment, which recorded a loss through unfavorable market
conditions.

“Going forward,
in addition to the steady earnings of the Japan and US Segment, the Crypto
Asset Segment has profit upside potential when the crypto asset market recovers,” Monex commented
in a presentation attached to the financial report.

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TradeStation Shows Increasing Momentum

For the
nine months of 2021 from April to December, TradeStation reported a net loss of
¥3,808 million, compared with a loss of ¥2,089 million last year. While still
sizable, Monex highlights significant improvement since its mid-year
strategy change. If the business strategy remodelling cost is subtracted from
the result, the profit will come in at ¥1,000 million.

Profitability
increased partly due to cost reductions and higher financial income driven by
interest rate increases, which translated into favorable results for Japanese
operations.

The
cryptocurrency sector had the most adverse impact on overall performance, with
a net loss of ¥748 million compared to a ¥14,942 million profit YoY.

Monex Adds US Stock Margin
Trading in Japan

In
mid-January, the Japanese-originated financial services giant unveiled a new
margin account services offering for US-based equities
Equities

Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa

Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa
Read this Term. The latest offering is
available to local traders from 23 January 2023.

With the
acquisition
Acquisition

Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant’s service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There

Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant’s service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There
Read this Term of TradeStation in 2021, Monex was one of the few brokers in Japan
able to offer direct access to US equities without having to open a separate
brokerage account. It has expanded its product offering to include derivatives
based on the underlying equities, including margin trading.

“With
US equity margin trading, investors can trade twice the amount of their
original capital (margin deposit) and buy and sell the same stock as many times
as they wish on the same day,” the company commented in the press release.

At the end
of 2022, Monex announced the closing of an agreement with AEON Bank for their
partnership in the financial instruments intermediary business. As part of the deal,
Monex will provide asset management services to the major lender.