Toronto Dominion Securities is closing its Sydney and Tokyo trading rooms and centralising its Asian operations in Singapore.
The Canadian bank did not have significant foreign exchange operations in either centre but it was a major player in the local money and bond markets where it was part of the rate setting board.
The bank is believed to employ 70 staff in Sydney and 17 in Tokyo. As part of the deal, TD has sold its Australian securities operation to Commonwealth Bank for an undisclosed price.
According to sources at the bank in Sydney, “hardly anyone” is expected to be relocated and staff departures have already started, they add. “In terms of FX it will not be a big issue,” says a source at the bank. “But the bond operation is huge and was making money.”
Although TD is arguing that it is better placed to grow its Asian business by being centrally located, Sydney-based sources argue that the bank will suffer a blow to its Australian bond credibility and will struggle to service customers effectively from a remote location.