(Bloomberg) -- UBS Group AG is closing its Mexican brokerage operation, according to two people familiar with the matter.
The Swiss bank told local employees of the decision on Wednesday, said the people, who requested anonymity because they aren’t authorized to speak to the media. It isn’t clear if the move was limited to Mexico or part of a wider strategy.
UBS media representatives did not respond to calls. A person who answered the phone at the Mexico UBS office said no one was available to respond to questions.
The news is the latest bit of gloom for Mexico’s shrinking stock market, which has seen a drought of initial public offerings and had five companies start the process of delisting since last year.
UBS was Mexico’s fifth most active brokerage among of the country’s 35 firms, according to June data from brokers association AMIB. It also was an active market maker in recent years, and currently has contracts to provide liquidity for nine Mexican companies, including Grupo Televisa, Elektra and the Mexican Stock Exchange.
Earlier this year, JPMorgan Chase & Co. shut its private banking business in Mexico. That was part of a regional trend in which wealthy clients in some of Latin America’s largest economies are moving their money to international financial capitals.
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