-
Japan's Margin Traders: Why They Matter for Currency Markets
The yen’s surge versus all its 146 peers in early January put the spotlight on Japan’s margin traders, who have been growing in influence as the nation’s ultra-low bond yields spur them to bet on overseas currencies. Foreign-exchange margin trading gained popularity in Japan after a revision to financial legislation in 2005, and surged to account for 68 percent of total spot transactions in 2013 when the central bank expanded quantitative easing. With their market share never falling below 43 percent since then, the influence of the so-called Mrs. Watanabes has become known across the world. In recent years, ... (full story)