The slowdown is particularly acute in G10 currencies: the U. Preliminary data for the first quarter of suggest emerging markets were again outperforming - G10 revenues are down nearly 10 percent; developing-market revenues are flat or marginally lower, Kuznetsov said.
Emerging-market forex revenue in was the third highest since at leastaccording to Coalition; G10 revenues were second worst. Forex earnings are being squeezed by declines in trading volumes and volatility.
Banks wring more money from volatile markets, as clients trade more. But currency volatility has plummeted to five-year trade forex with the banks as major central banks, from the United States to New Zealand, turned dovish.
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People are fighting for market share. The Mexican peso and Brazilian real moved sharply amid political changes.
The growing role of expensive automated trading systems in G10 markets has suppressed already wafer-thin margins. Less liquid emerging-market currencies, on the other hand, often can be traded on the phone, making profits higher. JPMorgan and Citigroup also reported declines in trading revenue, of 10 percent and 6 percent, respectively.
Bank of America said first-quarter overall trading revenue had declined 17 percent, with fixed income trading down 8 percent.