Online trading activity tailed off in August for the second month in a row, adding to the growing possibility that the third quarter will show the first-ever sequential decline in trading volumes. Analysts at Credit Suisse First Boston say that online brokers experienced a 2% decline in volume in August versus July and 20% versus May, the corresponding month of the prior quarter. Although CSFB cautions that August is a notoriously dead month in the market, both July and August saw fewer online trades than their corresponding months last quarter, making it likely – barring a very busy September – that the third quarter will see the industry’s first downturn.
