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What the buy-side really thinks of outsourced trading
Many buy-side organisations have warmed to the idea of outsourced trading in some form in recent years , but not all . Here we look at a range of views on the concept which has shifted from controversial to convenient for some , but remains problematic and an unthinkable option for others .
There are many camps which buy-siders can sit in with regards to their views on outsourced trading - from strong opposition , all the way to staunch advocate of the practice .
In between the two extremes are the reluctant converts , those happy to relinquish some aspects of the desk through opting for co-sourcing ( a hybrid setup ), and a handful who have swayed between the for and against arguments over time .
Of the latter , for the first time this year the industry is seeing those who once outright refuted the idea warm to the concept of outsourcing part of their trading activities . We ’ re talking big , big players here - Goldman Sachs Asset Management , for example .
On the flip side , it would be ignorant not to acknowledge that we are aware of some buy-side firms deciding to insource trading and terminate their relationships with outsourced providers , either through the upsides of an internal desk prevailing or dissatisfaction with the service they were receiving .
A shifting attitude Undoubtedly , sentiment towards outsourced trading has softened in recent years - a far cry from the debates which
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