Bank of America is reportedly set to wind down its electronic stock trading unit to serve clients of Merrill Lynch wealth management business, reported Bloomberg.
The business, which was a small unit in BofA’s equities division and run by Jonathan Wang and Steven Sadoff, was created last year.
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However, Wang and Sadoff were requested to seek new jobs within the firm.
The closure follows increased regulatory scrutiny of US equity markets and managers’ concerns for the potential perception of a conflict of interest. It also follows a period of intense scrutiny of electronic trading and its effect on retail investors.
As part of the move, the bank’s existing automated market-making unit which serves institutional customers remains intact, according to Bloomberg.
The publication said that the desk in recent weeks has advanced to a testing phase before being dismantled.
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