Banc of America Securities is selling Baypoint Trading, a business offering trading services to hedge funds on an outsourced basis, to its management, according to press reports yesterday. The price is not being disclosed.
The bank explained that the sale reflected the fact most hedge funds have internal trading capabilities. Reports say the so-called Prime Trading group was used by fewer than 30 of Banc of America Securities’ more than 500 prime brokerage clients.
In February, Jefferies Group hired a prime-brokerage team from Banc of America Securities, headed by Glen Dailey. But the sale does not affect the commitment of the bank to prime brokerage, a spokeswoman told reporters in the US. Banc of America introduced a fixed income prime brokerage service earlier this year.