[ T H O U G H T L E [ D A E D P E A R R S T H M I P E N | T M | A R H E X D ]
How has the recent acquisition by Marex impacted your outsourced trading offering ? The acquisition has benefited us in several significant ways . Marex ’ s end customer base is distinctly different from what we previously had ; they have a strong focus on futures and commodities on a global scale . Their customers are also very interested in trading and receiving support in other asset classes , beyond those they were accustomed to with Marex . By combining our strengths in equities and fixed income trading with Marex ’ s expertise in futures and commodities , we ’ ve created a more diversified and comprehensive offering . Now , with a global footprint that includes outsourced trading for securities , futures , and commodities , we have become a highly attractive partner to a variety of entities . Many of these entities were previously unaware that outsourced trading could meet their needs , especially in the futures and commodities space . While outsourced trading is well-established in equities , it ’ s less common in futures and commodities , with fixed income falling somewhere in between . This expanded capability positions us to better serve our clients across all these asset classes .
It ’ s been quite a year for the outsourced trading landscape , what are some of the biggest themes you are seeing ? The themes in outsourced trading have remained fairly consistent over the past few years , but they are becoming more pronounced . Outsourced trading is undoubtedly becoming more global and extending beyond equities into additional asset classes . This globalisation is driven by increasing client demand for services that can support trading across multiple regions and asset classes . In addition to this , there is a growing acceptance of outsourced trading among a broader range of entities , beyond just hedge funds . We are seeing more interest from institutional investors and corporates , who are recognising the value of outsourcing their trading operations . This shift is contributing to a significant increase in demand , and we are responding by expanding our offerings and geographical reach .
How are you catering for those trends within Marex ? We are continuing to build on our existing strengths while expanding into regions where Marex has established office bases and personnel . This expansion has provided us with access to new relationships and markets , particularly in the Middle East and Asia , where outsourced trading is gaining traction . We ’ ve had a presence in Hong Kong for some time , but Marex ’ s additional offices in Singapore , Australia , and other key locations are now enabling us to develop business in these areas . We ’ ve been visiting clients and building on the strong relationships that the Marex team has cultivated over the years . This collaboration has been essential in helping us engage more deeply with local clients and offer services tailored to their specific needs . Singapore , which serves as Marex ’ s Asian headquarters , will be a major focus going forward . As one of the most evolved financial services and business centres globally , Singapore is key to our efforts , complementing what has already been achieved in Hong Kong . The integration of our expertise in equities with Marex ’ s established presence in these regions strengthens our ability to deliver comprehensive , global trading solutions .
Just how big can this market get and how do you think the winners on the service provision side will be determined ?
There ’ s no question that the market can become substantially larger , with expectations for continued , steady growth . While it ’ s difficult to pin down specific global figures , it ’ s clear that the share of outsourced trading within the overall commission wallet has grown significantly . A few years ago , outsourced trading might have accounted for around 5 % of the market , but it ’ s now industry surveys point to it being at least twice that size . Looking ahead , it ’ s not unrealistic to expect outsourced trading to comprise a quarter or even a third of the entire market . This growth will likely be driven by the expansion of services and the ability to cater to an increasingly diverse range of client needs .
Are there any other key attributes of an outsourced trading provider you think are crucial over the next 12 months ? Global coverage is essential . Many of the outsourced mandates we ’ re receiving involve a hybrid approach — trading the US markets for Asian and European clients , or vice versa . Therefore , a global footprint is crucial for any provider hoping to be a meaningful player in this space . Additionally , the ability to trade across multiple asset classes is increasingly important . At Marex , our approach has always been to ensure that a client has all the information needed to say ‘ yes ’! It ’ s about making sure that the market fully understands the scope of our offering and where exactly we can add value . If you ’ re not clearly communicating your capabilities , you risk losing out on potential opportunities . The goal is to maximise our chances of winning every piece of business we ’ re competing for , and with the combined strengths of Marex , we ’ re in a stronger position than ever to do just that .
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