Lloyds Banking Group Plc is taking new rules to isolate its trading operations literally. Some traders will soon be physically separated from their colleagues and placed in a glass box to comply, according to people with knowledge of the matter.
About 120 staff at the Lloyds Bank Corporate Markets division, which includes foreign exchange and rates, will be put in the partitioned rooms to be finished over the next three to four weeks, said the people who asked not to be identified because the matter is confidential.
A spokesman for the bank declined to comment.
The ring-fencing rules, formulated after the financial crisis, require U.K. lenders to shield core services, such as checking and savings accounts, from riskier banking activities by 2019. Lloyds, which took about 20 billion pounds ($28 billion) of U.K. taxpayers’ money to prevent its collapse almost a decade ago, has some 1,500 people working at 10 Gresham Street in the City of London where the split will be made, one person said.
Britain’s biggest mortgage lender has an estimated 500 million pounds of expenses related to the new rules, while banks with large investment banks may face even greater costs. HSBC Holdings Plc has forecast expenses of as much as 2 billion pounds, while Barclays Plc has said that “structural reform costs” will be up to 500 million pounds in 2017 and 2018.
This isn’t the first time that Lloyds has segregated traders. In the aftermath of the currency rigging scandal in 2015, the dealers in charge of taking orders from clients to trade at benchmark rates were placed in a separate room away from the rest of the trading floor when executing deals
Source: Bloomberg.com | Original Link
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