According to the Financial Times, the 31-year old man from the Swiss bank’s London-based ETFs business was arrested in the early hours of this morning in central London in connection with the allegations and remains in custody.
In a stock market announcement, the bank said it is still looking into the matter so the potential loss could change and warned that the action could lead to the bank making a loss for the third quarter of 2011.
The bank also said that no customer accounts had been affected by the rogue trader.
The statement said: “UBS has discovered a loss due to unauthorised trading by a trader in its Investment Bank.
“The matter is still being investigated, but UBS’s current estimate of the loss on the trades is in the range of USD 2 billion. It is possible that this could lead UBS to report a loss for the third quarter of 2011. No client positions were affected.”
