[ I N D E P T H [ D | E M P A R K T E M T E N U T P D | A H T E D S ] from our perspective to work with clients who are really forward thinking . It ’ s those CIOs , or even heads of trading , who are saying ‘ I want to position my institution for the next 10 to 20 years , I don ’ t want to be holding on to the legacy of the way things have always been done , I want to be open-minded ’.
“ Going on a journey with a client to talk about how this could fit in among a much larger operating model transformation is a really interesting conversation [...] I think we ’ ll continue to see a slow chipping away at different client types but for the moment , those with more pressing situations like T + 1 are motivated in a different way to solve problems imminently .”
T + 1 is just one of many market changes , the others mainly centring around regulation including Mifid II reforms , the UK ’ s reversal on unbundling rules and the US swathe of rules via the SEC covering everything from best execution to clearing . Regulation may not be a sole driver for outsourced trading , but when coupled with fee pressures , the search for efficiencies and the costs of staffing along with scarcity of talent , it can often mark the tipping point .
No let up The pace of change is showing no signs of letting up . Over the past 12 months there have been a number of people moves , including but not limited to : Jefferies appointing
“ A client like Goldman Sachs is definitely not a one off , but on the other side of that , there are many clients who are on a journey ."
REBECCA CROWE , MANAGING DIRECTOR AND CHIEF OPERATING OFFICER , BNY MARKETS
Joram Siegel as managing director , head of fixed income outsourced trading from Marex ; StoneX Group adding former head of trading at Incline Global Management , Evan Halpern , as managing director of fixed income outsourced trading ; and Outset Global naming Abe Chappell and Paul Reiss as senior traders and managing directors . Meanwhile , in other news , Stifel and Marex unveiled a new prime brokerage referral partnership which will allow Stifel ’ s clients to access Marex ’ s trading and execution service ; while Brown Brothers Harrima ( BBH ) partnered with Tourmaline Partners , whose execution services became available to provide BBH clients with front-office trading solutions in global equities , derivatives , and ETFs . And finally , Northern Trust wins the award for most public mandates announced with the likes of True Potential , Rathbones and Nedgroup all signing up with the Chicago-headquartered firm . The last thing to tick off the list with regards the biggest talking points in outsourced trading is to ask whether any of the big three prime brokers – Goldman Sachs , JP Morgan and Morgan Stanley – will enter the outsourced trading world ? The answer right now is ‘ probably not ’. However , something to watch over the next 12 months - will any of the largest asset managers or hedge funds begin to even consider offering outsourced trading services to other buy-side firms . In this fast-moving , rapidly growing space , you wouldn ’ t rule it out .