[ I N - D E P T H
|
O U T S O U R C E D
T R A D I N G ]
[ I N - D E P T H
|
O U T S O U R C E D
T R A D I N G ]
OUTSOURCED TRADING:
The future of the
buy-side desk?
With an increasing number of buy-side firms turning to outsourced trading
providers in recent years, Hayley McDowell finds out how providers really
operate and differ from agency brokers, and examines what benefits opting
for outsourced execution can offer to the asset management industry.
48 // TheTrade // Summer 2019
O
utsourcing hasn’t historically been linked to
front-office activities and the buy-side trad-
ing desk, but the notion of outsourcing trading and
execution is starting to turn heads at asset manage-
ment firms, both large and small. Industry headwinds
and changes in market structure due to increased
regulation have seen the buy-side evaluate the tangible
benefits of outsourced trading, while the future of the
industry remains somewhat uncertain.
There are underlying issues with the front-office
outsourcing industry, and these take many forms.
To begin with, there is general confusion amongst
Issue 60 // TheTradeNews.com // 49