40% - 60% of London FIC staff may be affected.
Germany's second-biggest bank Commerzbank is considering cutting back its fixed income and currencies (FIC) business in London as it adjusts to declining demand, two sources familiar with the matter said.
Reuters reports that the bank plans to shift around half of its roughly 250 FIC staff in London - who have already seen a headcount reduction of about 20% this year - to Frankfurt, said two sources who declined to be named because they are not authorised to speak to the media.
Like all investment banks, the bank is suffering from sluggish demand for products in areas such as interest rate hedging and forex hedging, as interest rates linger at historic lows and market volatility remains subdued.
'An exact number has not yet been decided,' one of the sources said, adding that between 40 and 60 percent of London FIC staff may be affected. 'Many London-based employees will not want to move to Frankfurt and (will) likely leave the company.'
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