The bank says a less volatile currencies market during the 12-month period was responsible for the fall in FX trading revenues, despite the fact that currency volumes transacted over the period increased. In Q3 2011, State Street reported $204 million in trading revenues from FX activity. By the end of Q3 2012, FX trading revenues fell to $115 million, down 10.9% from Q2 2012.
Comparatively, the value of State Street’s assets under custody and administration went up 9% year-on-year by the end of Q3 2012 to $23.4 billion.
According to EuromoneyFXNews data, custodian bank FX revenues per 1% of market share declined almost across the board last year, with State Street, Northern Trust and Bank of New York Mellon all posting lower revenues compared with their respective market share.