© Reuters. A person walks past the Credit Suisse office at Canary Wharf in London, Britain, March 20, 2023. REUTERS/Hannah McKay
By Nell Mackenzie and Lananh Nguyen
LONDON (Reuters) – Bank of America’s (NYSE:) electronic equities desk has traded with a Credit Suisse desk using computer-driven strategies “out of an abundance of caution as of today,” an email seen by Reuters on Monday. saying.
Bank of America said it would no longer submit transactions to Credit Suisse’s “ATS Crossfinder.” That trading platform anonymously compares buy and sell orders for the same types of securities, according to the Credit Suisse website. The US Securities and Exchange Commission website calls the ATS Crossfinder a “dark floor.”
Bank of America sent the email to hedge fund traders and clients Monday morning.
On Sunday, the 167-year-old Swiss lender was listed in larger rival UBS, which agreed to pay 3 billion Swiss francs ($3.23 billion) for Credit Suisse in a package engineered by Swiss regulators.
Credit Suisse declined to comment on the email and Bank of America also declined to comment.
The Credit Suisse bailout was backed by a huge guarantee from the Swiss government, helping to avert what would have been one of the biggest bank collapses since the fall of Lehman Brothers in 2008.
Switzerland has pledged 260 billion francs in liquidity facilities and guarantees to UBS to help smooth the takeover as Credit Suisse clients and counterparties reassess their relationship with the affected lender.
The deal will also make UBS Switzerland the only global bank in Switzerland and make the Swiss economy more dependent on a single lender.
