UK DMO says Credit Suisse to quit as gilt primary dealer

LONDON (Reuters) - Swiss bank Credit Suisse no longer wants to act as a gilt-edged market maker (GEMM), or primary dealer in British government bonds, the UK Debt Management Office said on Thursday.

(Reuters)

The DMO said Credit Suisse's resignation as a GEMM would take effect at the close of business on Friday, and would reduce the number of GEMMs serving the wholesale market to 17.

Tougher regulation since the financial crisis has made it costlier for banks to act as market makers or dealers in government bonds, due to the extra capital that they now have to hold against possible losses.

(Reporting by David Milliken; Editing by Ana Nicolaci da Costa)