UBS exits exotic structured products business in FICC

UBS is fully exiting its exotic structured products business within its fixed income, commodities and currencies (FICC) division, the bank has confirmed. As part of the restructuring, four senior managing directors have left the bank: Todd Morakis, head of commodities, Sascha Prinz and David Sacco, co-heads of rates, and Chris Ryan, head of credit. The restructuring has issued from a review of UBS's FICC business by Carsten Kengeter and Jeff Mayer, who joined the bank as joint global co-heads of FICC last year. In line with the changes being made, the bank will be making further reductions in headcount in following weeks, according to a memo released internally on January 21 which the bank has confirmed.

The reorganization follows an announcement by UBS in October last year outlining the repositioning of the investment bank. The ultimate aim is to emphasise the core strengths within FICC, by focusing client business on facilitation and flow, while relying on a lower balance sheet and risk utilisation.

"As announced in October 2008, the Investment Bank is in the process of reprioritising its