UBS has closed a European credit proprietary trading desk in an effort to rein in risks and costs, after investment banking pre-tax losses hit Sfr3.7bn (€2.2bn) in the third quarter as a result of writedowns in its fixed income, currencies and commodities division.

Up to 12 jobs are expected to be cut as a result of the closure of its European global credit strategies trading desk in London, sources within UBS' investment banking division said.