The TRADE 60 | Page 49

[ I N - D E P T H | O U T S O U R C E D T R A D I N G ] 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