Outsourced trading as a strategic advantage

Outsourced trading insight hero

We explore the different ways institutional investors are enhancing, extending and deepening their trading capabilities through outsourcing – and what their experience has been.

November 2023


Tony Bisegna
Head of Global Markets, State Street

Daniel M

Dan Morgan
Global Head of Portfolio Solutions, State Street

Market volatility, tight margins, increased regulation and cost pressures present multiple challenges for institutional investors. Outsourced trading has emerged as both a trend and a necessity in navigating these competing demands. At the touch of a button, investment firms can now access a global network of specialized trading partners, amplifying their reach and capabilities. Yet while trading financial assets through a third-party desk is proving productive and efficient for those in the know, misconceptions persist that may be contributing to the uneven adoption of outsourced trading.

In this report, we highlight findings from our research into how institutional investors are utilizing outsourced trading capabilities, what their possible tangible benefits are, and how they characterize their overall experience. The research is based on in-depth interviews with several asset management firms from across North America, Europe, Middle East and Africa, and Asia Pacific, with assets under management ranging from less than US$30 billion up to almost US$300 billion.

For the research, we conducted interviews with a variety of experts who are either directly or indirectly involved in trading for investment firms, including portfolio managers, chief investment officers, chief operating officers, and heads of operations and global trading functions.

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