Swiss bank UBS will outsource most of its fixed income trading platform. This is part of the bank’e efforts to cut costs as cost pressures are mounting in the investment banking sector. The bank will replace its patchwork of multiple trading platforms with standardized solutions from technology groups Murex and Ion Trading. The step is expected to 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. UBS decided more than a year ago to pare back substantially its fixed income business. Apart from a continuing strong presence in foreign exchange and precious metals, the bank is concentrating on a much smaller, client-driven rates and credit business. It has chosen Murex, the French trading software company, to take over large parts of its fixed income platform, including areas such as the booking of trades, their valuation and risk management. In addition, the bank has chosen Ion Trading to provide gateways to electronic exchanges and pricing tools.
