JP Morgan Chase & Co., which plans to stop trading in physical commodities, has acquired the over-the-counter commodity derivatives portfolio of UBS.
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The transaction excluded precious metals and index-based trades, but included hedge positions on financial exchanges.
In October, UBS said that it was closing the majority of its commodities "flow" trading business involving raw materials and financial derivatives as part of a slimming down last year, in which it withdrew from large parts of fixed income and laid off 10,000 employees.
However, the bank retained its precious metals and commodities index business as part of a strategy that put increased emphasis on global asset management and wealth management.
UBS also remains active in commodity trade finance and has expanded by hiring 10 bankers in Geneva in the sector since the start of the year.
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By GlobalDataUBS said in a statement: "Risk on the portfolio has been assumed by JP Morgan and the two banks will work together in the coming months with their clients to fully assign contracts for individual trades to JP Morgan.
"This transaction is a further step for UBS in executing its strategic plan to refocus and simplify the investment bank."
Financial terms of the transaction were not revealed.
