Due to the reaction between its components resulting in its decomposition, aqua regia quickly loses its effectiveness (yet remains a strong acid), so its components are usually only mixed immediately before use.
Upon mixing of concentrated hydrochloric acid and concentrated nitric acid, chemical reactions occur. These reactions result in the volatile products nitrosyl chloride and chlorine as evidenced by the fuming nature and characteristic yellow color of aqua regia. As the volatile products escape from solution, the aqua regia loses its potency.
$$\ce{HNO3 + 3HCl -> NOCl + Cl2 + 2H2O}$$