from Wells Fargo and State Street.
As for clients, the broad provider landscape offers a mix of banks and boutiques who have specialities in different regions. Many UBS clients would have been looking for a similar style provider with a strong European base – possibly leaning towards other banks – however, The TRADE understands that many other providers have been benefiting from the business opportunities, with some moving upstream.
Far from destabilising the industry, UBS’ exit has arguably accelerated competition and reinforced the resilience of the provider base.
Another shock story landed at the end of August when Financial News revealed that BNP Paribas had stopped offering the service to external clients. BNP Paribas had been another prominent player in the space and had featured in The TRADE’ s proprietary survey.
BNP Paribas’ offering will still exist for its asset management arm, a unit that is only growing through recent M & A, however the retrenchment from the external offering will see more clients offboarded and yet even more opportunity for others in the market.
Both exits are somewhat shrouded in mystery given how the industry is in such an ascent, but for the remaining players this only adds to the opportunity in the market.
Custodians continue to step up One of the most notable shifts in the provider mix is the increasing role of custodian banks. BNY Mellon, State Street, and Northern Trust have all sharpened their outsourced trading offerings, viewing them as extensions of core services in custody, fund administration, and middle-office support.
BNY in particular has recorded big wins in recent months, leveraging its global network and longstanding trust with the buy-side. Last year’ s Goldman Sachs Asset Management win represented on of the first examples of a provider winning business from the‘ 800lb gorillas’ of the industry, while a landmark deal with Liontrust Asset Management followed this year where the entire desk was outsourced.
Custodian banks’ abilities to integrate trading seamlessly with custody, settlement, and reporting is proving compelling for large asset managers seeking efficiency and reduced operational friction.
The custodians bring scale, capital strength, and a degree of continuity that appeals to managers wary of concentration risk or the perceived fragility of standalone firms. Yet questions remain: can a bank-run model deliver the same flexibility, independence, and client-first culture that boutique providers pride themselves on?
From the buy-side perspective this is certainly a point of contention, as one head of trading tells The TRADE:“ Custodians already handle outsourced middle- and back-office. Now outsourced trading offers the front-office too. At this rate, they might as well outsource fund management and distribution and the buy-side firms can just go home.”
Clear Street brings challenger energy; Boutiques hold their ground If the custodians represent
stability, new entrant Clear Street embodies disruption. As we mentioned above, the US-based prime brokerage and clearing firm formally entered the outsourced trading market this year, positioning itself as a techdriven alternative with modern infrastructure and a focus on execution efficiency.
Clear Street’ s arrival demonstrates the attractiveness
6 // Outsourced Trading Handbook // 2025