UBS shuts Houston energy trading desk
UBS is to close its Houston-based energy trading desk, laying off an undetermined number of staff. But the Swiss bank also said it will move some of Houston’s 380 energy staff to its Stamford, Connecticut, office, where energy trading will continue.
In August UBS Energy also scaled back its trading business, shedding 130 jobs in its Houston and Portland, Oregon, offices. Around 100 of those jobs were believed to have been technology related.
UBS had hoped its AA+ credit rating would prove attractive to counterparties increasingly concerned about credit risk in the energy trading market. But market participants said UBS was unable to shake off market perceptions that it was a re-branded Enron. Greg Whalley, the former Enron president and chief operating officer, now heads UBS Energy.
At the International Swaps and Derivatives Association annual general meeting held in Berlin in April, UBS said it was considering adding interest rate swaps along with metals and currency derivatives to the online energy trading platform it bought from Enron.
But Mark Haedicke, UBS Energy’s Houston-based general counsel, at the time declined to comment on the success of the business. “We’ve only been operational for 10 weeks so it’s too early to call. We should have a better idea of how successful the platform is within six months to a year,” Haedicke told delegates.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
FRTB start dates must align globally, says European Commission
Lawmaker could trigger delay to market risk rules in Europe if US implementation drags on
Fed green lights more capital relief trades
Five US banks authorised to issue repeat credit-linked notes backed by financial guarantees
Basel III endgame: why moving fast might prove better for banks
Republicans are pushing for reproposal, but a rapid finalisation may prove less far-reaching
Isda pushes to ‘decouple’ Simm calibration from model changes
Emir 3.0 prompts effort to separate risk-weight revisions from methodology updates
Basel war on window-dressing may smooth liquidity, at a price
Changes to G-Sib charge could curb year-end repo volatility, but also cut balance sheet capacity
One year on, regulators still want a cure for bank runs
Broad support for higher outflow assumptions on uninsured deposits, but that won’t save insolvent banks
Watchlist and adverse media monitoring solutions 2024: market update and vendor landscape
This Chartis report updates Watchlist monitoring solutions 2022 and focuses on solutions for sanctions (name and transaction) screening and monitoring adverse media and its related elements
Basel Committee reviewing design of liquidity ratios
Focus on LCR and NSFR after Silicon Valley Bank and Credit Suisse, but assumptions may not change
Most read
- Breaking out of the cells: banks’ long goodbye to spreadsheets
- Too soon to say good riddance to banks’ public enemy number one
- Industry calls for major rethink of Basel III rules