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CORRECTED-RBS to wind down swaps clearing units
May 19, 2014 / 8:31 AM / 4 years ago

CORRECTED-RBS to wind down swaps clearing units

(Corrects headline and paragraph 1 to make clear RBS is winding down Rates Prime Broking and Rates OTC Clearing businesses, not its interest-rate trading businesses; In paragraph 2, adds missing word ... our ... to quote)

By Aashika Jain

May 18 (Reuters) - Royal Bank of Scotland said on Sunday it is winding down its Rates Prime Broking and Rates OTC Clearing businesses as capital and operating costs increase.

RBS cited “increasing level of capital, operating costs and investment that would be required for our business to be globally competitive in a market with extremely thin margins,” as the reason for winding down its Rates Prime Broking and Rates OTC Clearing businesses.

RBS’ prime broking business provides clients with margin consolidation and credit efficiency services, while its rates OTC clearing unit aids customers in clearing interest rates contracts that relate to over-the-counter transactions.

Investment banks across the world have been struggling with tougher regulations and low interest rates.

Barclays Plc was the first British bank to scale back investment banking operations as its business culture faced with criticism by British regulators and it was fined for manipulating Libor benchmark interest rates. (Reporting by Aashika Jain in Bangalore; Editing by Steve Orlofsky)

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