HSBC has recently reported its Q2 figures, which were highlighted by a staunch 34% QoQ decline in foreign exchange revenues – the largest composition of the bank’s global trading business.

HSBC is a banking conglomerate that provides myriad financial services worldwide – unfortunately, one of its greatest sources of trading – Forex – has seen a widespread decline in volumes as historically low volatilities have hurt the overall industry. In particular, Forex volumes fell to $631 million in Q2, corresponding to a -34% loss QoQ.

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The bank has attributed waning Forex revenues to ‘tough conditions’ that are seemingly underpinning business. More specifically, HSBC cited revenue declines that were reflective on “lower market volatility and reduced client flows,” according to a recently released statement.

While institutional banks are feeling the crunch on Forex revenues and volumes, it is also the retail sector that has suffered the same fate, with several regional brokers also witnessing lower YoY figures. In particular, Japanese brokers, largely reliant on the USD/JPY trading, have seen the largest decreases in volumes.