Wells Fargo continues to scale back its U.S. equity markets business, pulling out of the electronic or low-touch retail market making business.
As first reported in the Wall Street Journal, Wells Fargo closed this group as it continues to focus on more profitable areas. Also, the bank said it would continue its institutional market making and trading businesses.
Credit Suisse also stopped its retail market making activities earlier this year, following Bank of America deciding to terminate plans to open an electronic market making unit last year.
Late last year the bank shuttered its Liquidity Crosser dark pool. At that time, the bank stated that due to light investor demand and competition from other major alternative trading venues such as Crossfinder and Liquidnet, the company could no longer keep the offboard venue open.
The San Francisco-based company said at that time it would still offer its clients a full suite of electronic trading tools to help them execute orders.
The bank has been routing orders to other extant dark pools for its customers who choose that option.