UBS Group AG is closing its outsourced trading desk, one of the largest such offerings on Wall Street, as it refocuses its global markets strategy. The bank has begun informing clients of the decision, giving them three months to find an alternative provider, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter AS highlighting that despite shutting down its outsourced trading business, UBS will maintain its execution hub, ensuring continued trading support for its institutional clients. A UBS spokesperson emphasised the firm's commitment to growth and servicing clients through its global markets division.

Outsourced trading desks have become a critical resource for hedge funds and asset managers, offering execution support during peak periods or even serving as a full replacement for in-house trading teams. As margin pressures mount due to the shift toward passive investing, many funds have turned to outsourcing solutions to reduce costs and improve efficiency.

UBS was a major player in outsourced trading, serving around 100 clients, according to The Trade. The firm was ranked highly in client satisfaction, with half of respondents in The Trade’s Outsourced Trading Survey rating UBS’s service as excellent.