May 21 Bank of America Corp is
dismantling an electronic market-making unit it set up last year
to serve its Merrill Lynch wealth-management unit's clients, two
people with knowledge of the matter told Bloomberg.
Increased regulatory scrutiny of U.S. equity markets and
managers' concerns for the potential perception of a conflict of
interest killed the project, the media service reported, citing
people familiar with the situation who requested anonymity. (link.reuters.com/suh59v)
The desk advanced to a testing phase before being abandoned
in recent weeks, these people said.
The two executives hired to run the desk, Jonathan Wang and
Steven Sadoff, were requested to seek new jobs within the firm.
One of the people said parts of the business Wang and Sadoff
created will be used by the bank's equities execution services
and client solutions teams.
The firm's existing automated market-making unit remains
intact, one of the people added.
Bank of America, the second-largest U.S. lender, acquired
Merrill Lynch in 2009.
(Reporting by Aashika Jain in Bangalore; editing by Andrew Hay)