Evolution of trading: Why is outsourcing the ‘new normal’ and what comes next?

This article was featured in the Best Execution Publication ‘Navigating the New Normal – Securities Trading in a Post-Covid World’

Massimo Labella, Head of Outsourced Trading Europe, and Chris Elliott, Outsourced Trading Sales at leading provider of outsourced trading solutions, Cowen, recently met with David Berney, founding partner of Ergo Consultancy, an independent European trading consultancy for asset managers and hedge funds, for a frank exchange on outsourced trading and the “new normal”.

They addressed some of the nuanced points that often get lost in the noise as well as looking at what to expect in a post-Covid world.

Every client has different needs and different views. Some firms will not currently consider outsourcing their trading desk ask they believe their traders provide added-value. Then there are those who just naturally do it, because they prefer to concentrate on managing the funds and feel the trading is more a commoditised function.

Chris Elliott, Outsourced Trading Sales

Key Discussion Points

Download this report to hear out about:

  • Why people are talking about a ‘new normal’ and where outsourced trading fits in
  • How the upheaval of the past year has added to the focus on outsourced trading
  • What types of firms are showing most interest
  • What types of outsourced trading models and solutions are available
  • Why some have historically dismissed the idea of an outsourced trading desk
  • How to get a proper understanding of what outsourcing solutions can do
  • How buyside desks can enhance their strategy by adding asset class capabilities
  • How is outsourced trading in fixed income becoming more relevant
  • What is the value of independence when choosing an outsourced trading provider
  • Why is there is a difference between a buyside and an sellside provider
  • What difference does provider longevity make
  • What the process is for moving to an outsourcing arrangement
  • What can we learn from the past year as we move forward

The question starts with where value gets created. Some people believe it’s execution. Some people, if we’re talking about equities, believe it’s stock selection. Generally speaking, the answer is a bit of both. That is one of the reasons many firms are looking at supplementary solutions, retaining some in-house trading functions and outsourcing others.

Massimo Labella, Head of Outsourced Trading Europe

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