All change:
How an industry in its prime continues to see changes in the provider landscape
The outsourced trading industry has never seen such high demand. In fact, the space has been flourishing to the point that our coverage in recent years has often focused on new entrants on the provider landscape- both confirmed and speculative.
Born out of buy-side budget pressures, regulatory burdens, and the growing complexity of global execution, outsourced trading has matured from a niche solution into a mainstream consideration for asset managers of all shapes and sizes. The emergence of co-sourcing( or a hybrid approach as some call it) has seen even more managers turn to the concept for support, spurring more investment and activity from the service provider world.
The caveat is always that buyside reservations still exist in some pockets around increased decisions to outsource. Yet, the sector is undeniably thriving, and despite its momentum, the landscape is anything but static. The shock exit of UBS from the scene has been recently
The outsourced trading space is reportedly booming, yet shock exits from staple providers in the space have shaken up the landscape providing opportunity to all those who remain and new entrants eyeing the sector.
followed by the announcement that BNP Paribas would stop offering the service to external clients. Meanwhile, the notion of consolidation remains prominent. We have new entrants, speculation over further provider expansions, and there has still been aggressive foray into the sector from both banks and boutiques.
The provider ecosystem is in the midst of another evolution in this dynamic, yet growingly important space which still remains in its prime.
UBS bows out: Shockwaves and opportunity The most dramatic storyline this year was the sudden withdrawal of UBS from outsourced trading. For many, it came as a surprise: the Swiss bank had built a credible presence in the space, leaning on its global infrastructure, balance sheet, and buy-side relationships. When The TRADE launched its inaugural Outsourced Trading Survey in 2023, UBS garnered the most responses and according to information provided, has one of the largest( if not the largest) client base across the industry. So, you can imagine the shock once news landed of the bank’ s exit.
However, UBS’ retreat left clients and staff searching for new homes- creating immediate opportunity for rivals. Competitors, from independents to global custodians, moved quickly to absorb both.
Clear Street added Morgan Ralph, who led business development and platform management for UBS’ outsourced trading, to launch its own platform. The prime broker also bolstered its roster with additions
4 // Outsourced Trading Handbook // 2025