Additionally, the talent wars also reinforce the competitive dynamic: providers are not only competing for mandates, but also for the individuals who can deliver them.
Thriving amid change What makes the current wave of change so significant is that it comes at a time when outsourced trading is flourishing. Industry surveys suggest adoption has grown steadily year-on-year, with even the largest asset managers increasingly open to partial or full externalisation of trading.
The TRADE’ s The TRADE’ s 2024 Outsourced Trading Survey findings showed that the percentage of those opting for full outsourcing rose from 42 % to 47 % in the most recent survey findings( 2024), while‘ co-sourcing’ dropped from 49 % to 45 %.
The drivers of cost efficiencies, global reach, technology and a refined focus on other core areas of the asset management business continue to pull more hedge funds and asset managers towards the concept with each passing year.
The growth trajectory is unlikely to slow. Even as the landscape shifts, demand continues to rise, ensuring that providers of all stripes- banks, custodians, boutiques, and challengers- have ample opportunity.
The outsourced trading market is entering its prime, but its contours are far from fixed. Change is the only constant, and as 2025 unfolds, the competitive energy shows no sign of abating. Outsourced trading has come of age- but it hasn’ t stopped growing up.
2025 // Outsourced Trading Handbook // 9