Kweku Adoboli, 31, will be held until another court appearance on Sept. 22, presiding magistrate Carolyn Wagstaff said.
Adoboli, who is charged with one offence of fraud by abuse of position and two offences of false accounting, did not enter any pleas at the brief hearing at a London court.
Prosecutors said one of the alleged offences dated back to 2008, and indicated that Adoboli is alleged to have made efforts to cover his tracks following unsuccessful trades.
Wearing a light blue sweater and a white shirt, Adoboli smiled and sniffled as a court clerk read aloud his name. He spoke only to confirm his details and his address in a swanky east London apartment building.
The young trader, who was arrested Thursday, has been employed by UBS on an equities desk known as Delta One and worked with exchange-traded funds, which track different types of stocks or commodities such as precious metals.
"He involved himself with trades which were highly dangerous for the bank," prosecutor David Levy told the court.
Adoboli was represented by law firm Kingsley Napley, who previously appeared on behalf of Nick Leeson -- the trader who brought down British bank Barings in 1995 after he made around $1.4 billion of losses in unauthorized trades.
Defence lawyers made no comment to waiting reporters as they left the court.
UBS has found itself under pressure to explain how its managers failed to catch the $2 billion loss, which prosecutors allege was the result of rogue trading, with experts calling into question the Swiss bank's ability to turn around its scandal-hit image.
"Until UBS has explained in detail how such a significant loss due to unauthorized trading could happen, and how the problem will be solved, confidence will remain impaired," said Andreas Venditti, an analyst at Zuercher Kantonalbank.
Some commentators and politicians called for senior managers at UBS to take responsibility for the loss, which the bank said could put its third-quarter results in the red. Ratings agency Moody's placed UBS's credit grade on review for possible downgrade, citing worries over the future of its London-based investment unit.
Switzerland's Social Democratic Party, which has two representatives in the country's seven-member government, accused UBS on Friday of "arrogance and greed" for failing to curb its business practices in the wake of the 2008 banking crisis.
In a statement, the party leadership called for "consequences" to be drawn from the latest incident, including a ban on "proprietary trading" for key banks; the replacement of "egomaniacal, arrogant and irresponsible managers;" and a response from UBS to the rumours that the rogue trade was connected to the Swiss National Bank's decision last week to set a minimum price for euro to Swiss franc exchanges.
Manuel Ammann, a professor of finance at the University of St. Gallen, said it would be difficult for UBS to sell the investment unit in the current depressed financial climate, though some shareholders might prefer it to be split off.
"From a risk point of view there are good grounds for separating the classic credit and payment business from the investment banking, because there's a danger of cross-infection," Ammann said. "Shareholders would prefer to have two shares of two focused companies than a single share for a conglomerate."
UBS stock was up 5.1 per cent at 10.25 francs ($11.72) on Friday afternoon. Shares had slumped 10 per cent the day before, after the bank said a lone employee had caused the loss with unauthorized trades.
The bank refused to comment on BBC reports that it was Adoboli himself who alerted managers to the loss.
UBS spokesman Andreas Kern also declined to comment on a report in Swiss newspaper Tages-Anzeiger on Friday which claimed that the entire trading team in London where the alleged unauthorized deals took place had been suspended.
But Kern said the paper's report of new job cuts at the investment bank, to be announced at an investors meeting Nov. 17, referred to a reduction of about 1,600 posts already announced last month as part of a plan to save about 2 billion francs over the next two years.
The international banking industry has been trying to put stricter controls on its traders in the wake of a 2008 scandal at France's Societe Generale, when trader Jerome Kerviel gambled away €4.9 billion ($6.7 billion), and the infamous Leeson case.
UBS chief executive Oswald Gruebel was brought in two years ago to rehabilitate the bank's damaged reputation after a series of missteps that included huge losses in the subprime mortgage market and an embarrassing U.S. tax evasion case.
Ammann, who has observed the Swiss banking industry undergo massive changes over the past decade, said UBS would likely survive the latest scandal. "The financial loss can be stomached and the reputational loss can be repaired," he said.
David Stringer and Robert Barr in London contributed to this report.