Swiss bank UBS is set to outsource its fixed income trading platform to two technology firms Murex and Ion Trading in a move to cut costs.
UBS has entered into deals with the two firms to replace its range of multiple trading platforms with standardised solutions.
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The deals, which will manage bookings and electronic exchange gateways, will allow UBS to cut staff within its rates and credit trading business, and enable the bank to reduce hundreds of millions in costs over a number of years.
UBS has selected Murex to take over large parts of its fixed income platform, including booking of trades, their valuation and risk management, while Ion Trading will offer gateways to electronic exchanges and pricing tools.
A combination of strict regulatory environment and declining trading in fixed income by banks is forcing all banks to restructure their operations.
However, UBS said that fixed income trading has been under currently pressure with tighter regulatory capital rules, a move towards lower-margin central clearing of derivatives and a severe slump in revenues in the second half of last year.
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By GlobalData
