Wall Street’s macro traders are set for their weakest performance in foreign-exchange and rates trading since the pandemic era, as global banks grapple with shrinking margins and a challenging economic environment.
Data from Coalition Greenwich indicates that over 250 major financial institutions, including Goldman Sachs, JPMorgan Chase, Citigroup, and Morgan Stanley, are projected to earn $32 billion from trading Group-of-10 (G10) rates and $16.7 billion from currency trading in 2024.
These figures represent a year-on-year decline of approximately 17% in G10 rates revenue and a 9% drop in foreign exchange trading revenue.
The downturn reflects the difficulties posed by tighter profit margins and broader macroeconomic pressures affecting financial markets worldwide.
Source: Bloomberg, Stockwatch Cyprus