The shape of things to come ?
The Financial Times reports that UBS has struck two deals to outsource most of its fixed income trading platform in a radical step highlighting the scale of cost pressures in the investment banking sector.
The bank will replace its patchwork of multiple trading platforms with standardised solutions from technology groups Murex and Ion Trading, people close to the situation said.
Top-tier banks have long outsourced various smaller pieces of trading technology, but UBS’s move is seen as the most drastic so far by a larger lender.
Analysts said it would enable UBS to reduce staff levels throughout its rates and credit trading business, and potentially allow the bank to strip out hundreds of millions in costs over a number of years.
Hit the link below to access the complete Financial Times article:
UBS to outsource fixed income trading platform (subscriber content)
Deutsche Bank battered by debt market slowdown (subscriber content)