The number of jobs to be affected by the move is not disclosed.
The move is in line with CEO Bill Winters’ strategy to shut down under-performing businesses, in order to cut down on costs.
This comes on the heels of the bank’s announcement in January to close cash equities, equity research and equities capital market business, putting close to 200 jobs at risk while saving around $100m.
Initially, the bank thought of keeping its convertible bond and equity-derivatives business open. However, the bank now plans to close the business as it has now become expensive to maintain.
the bank announced the closure in January of its unprofitable equities business, which includes underwriting for initial public offerings, it said it was keeping its convertible bond and equity-derivatives business open. But it has become increasingly expensive for banks to operate equities derivatives businesses under new capital rules.
The closure of equity derivatives and convertible bonds business would impact Standard Chartered’s operations in Hong Kong, which is the bank’s main revenue generating region.
Since his joining in June this year, Winters slashed close to 1,000 senior positions and cut the bank’s dividend in half to save about $1bn.
The bank is also considering various business lines, as reported in Wall Street Journal.
