(Bloomberg) -- Citigroup Inc. and JPMorgan Chase & Co. have closed down desks dedicated to handing smaller orders as Wall Street continues to cut costs on trading floors.
The two banks have shuttered their odd-lot trading desks in recent months and started executing such trades electronically instead, according to people with knowledge of the matter. At Citigroup, the desk was previously manned by eight traders, while at JPMorgan less than five people had been executing such trades, said the people, who asked not to be identified because the information isn't public.
“We have significantly enhanced our infrastructure and trading capabilities to create a better experience for clients,” Danielle Romero-Apsilos, a spokeswoman for Citigroup, said in an emailed statement.
A JPMorgan spokeswoman declined to comment on the change. Business Insider reported the moves earlier Friday.
In recent years, banks have been looking to electronically handle the trading of so-called odd lots, where the order amounts tend to be smaller than normal. Rather than having traders spend time finding the right price for such transactions, firms have begun using algorithms instead.
To contact the reporter on this story: Jenny Surane in New York at jsurane4@bloomberg.net
To contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Daniel Taub, Steve Dickson
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