UBS has made a shock exit from the outsourced trading game just weeks after appointing a new head of the business, according to multiple sources familiar with the matter.
Ian Power
The Swiss bank has given its clients a three month notice period that it will shutter its outsourced business, The TRADE can reveal. The move comes as the bank looks to ensure its resources are correctly aligned with its global plans.
UBS’ Execution Hub is not being closed and will continue to focus on the bank’s global wealth management and bank for banks clients.
“In the fourth quarter of 2024, our global markets division recorded its highest quarterly market share gain for cash equities and the highest prime brokerage balances ever,” said a UBS spokesperson when approached for comment by The TRADE.
“We continue to focus on growth and remain dedicated to our clients as we service them through our broad and leading global markets offerings.”
The news comes just weeks after UBS appointed Ian Power as head of its Execution Hub, EMEA, having most recently served as the firm’s head of multi-asset trading, UK.
He took over from Chris Blackburn who departed in February after nearly nine years with the bank.
Power has left the business following its decision to exit, The TRADE understands.
According to sources familiar with the matter, the decision to shutter the business taken this week was “unexpected” and “has come out of the blue”.
As one of the largest outsourcing firms by number of clients, UBS’ outsourced trading business did well in The TRADE’s most recent iteration of its Outsourced Trading Survey, seeing the second highest client participation in 2024. The bank reportedly has around 100 clients.
Around half of those surveyed (48%) stated that UBS was excellent in The TRADE’s survey, while 22% said the bank’s outsourced service was very good. Just 17% of those surveyed said UBS’ service was satisfactory or below.
The bank’s top scoring areas were in execution, coverage, client services and relationship management.