ZURICH (Reuters) - Swiss bank UBS
UBS will replace its host of platforms with standardised technology from Murex and Ion Trading, the source said, as the Zurich-based bank undergoes a three-year plan to largely withdraw from rates and credit trading.
Global investment banks are rethinking their operations and, in most cases, shrinking their businesses due to a regulatory drive to make markets less risky and a reduction in banks trading for their own account.
Fixed income units, which encompass foreign exchange and commodities as well as debt and bond trading activities, are particularly vulnerable to the sweep of regulatory change aimed at preventing another financial crisis.
A spokeswoman for UBS declined to comment on Monday. Murex and Ion Trading were not immediately available for comment.
"The move to outsource is in line with UBS's strategy for their fixed-income arm and with the streamlining of fixed income as whole," said Rainer Skierka, an analyst at J. Safra Sarasin, who has a buy rating on UBS stock.
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(Reporting by Alice Baghdjian and Oliver Hirt in Zurich, Lionel Laurent in Paris and Aashika Jain in Bangalore; Editing by Louise Heavens)