More pension funds, insurers and asset managers are outsourcing part or all of their dealing desks to specialist traders as they seek to cut costs and adapt their operations to deal with the coronavirus crisis, industry sources say.
The shift to outsourcing has also been accelerated by changes in working practices brought about by the pandemic. "Last year was a really, really important turning point for the industry," he said, adding that asset managers were rethinking how they operated as the type of market volatility seen in 2020"always exposes a bloated cost base".
It started around a decade ago as an equities trading service for hedge funds and wealth managers. It expanded after European regulation made running a trading desk more complex https://www.reuters.com/article/us-markets-assetmanagers-insight/asset-managers-farm-out-trading-as-costs-and-complexity-climb-idUSKCN1UV2FE.
Cole Smead, president of Smead Capital Management in Phoenix, Arizona, which switched to outsourced trading with Outset Global in October, said the firm no longer needed to employ a trader in London.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.