Credit Suisse is reportedly planning to relocate its London and Paris-based trading team to its asset management unit to increase external capital.
Operating as part of the bank’s Systematic Market-Making Group (SMG), the team will be headed by the group’s Paris-based co-head Pierre-Yves Morlat and manage about $750m in internal capital, reported Reuters.
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Sources told the publication that the shift of the team from its investment banking unit will enable Credit Suisse to expand its business by raising funds from external investors.
The move is partly a result of the regulations endorsed after the 2008 financial crisis that restricts banks from trading with their own capital.
The team that makes money for the bank by trading across all asset classes is planning to move by the end of the year or early next year, sources said.
However, the exact size of the team has not been disclosed as the plan is at an early stage.
Additionally, Jon Kinderlerer, a managing director at Credit Suisse in New York, will advise the team on product development and raising capital.
