Swiss bank UBS has adopted MIT’s TRAC (Trade Risk Active Control) collateral management system to support its commodity trade finance (CTF) business.

The product will be installed at a single Swiss location and be integrated throughout the bank’s IT infrastructure. The system’s multi-branch functionality will allow CTF teams in Zurich, Geneva and Lugano to connect remotely to a single centralised system.

Known primarily as an investment bank, UBS has made moves to boost its CTF offering in recent months. It has added 10 bankers to the team since January, having trimmed its investment banking team by 10,000. At the time, the bank’s director of CTF Albert Steiger said: “UBS has decided to downgrade its investment banking and that gives the opportunity to our department and we have been hiring a lot of people.”

Speaking of UBS’s decision to adopt TRAC, MIT’s general manager Cohen Dumani says: “It’s a highly strategic contract and reference for us. As part of this deal, the product will be significantly enhanced with very interesting new functionalities that will be made available to the banking community.”