Seesawing markets are forcing many buy-siders to reassess how they operate, as coronavirus upends the norms of trading. But for one segment of the industry, the disruption may bring an opportunity: outsourced trading firms.
The flux has sparked a flurry of trading as firms rush to enter or exit positions, lay off risk lay off risk lay off risk lay off risk lay off risk, or adjust strategies. Some asset managers may be unable to handle this increase in trade volumes internally. At one of the larger outsourced trading firms, Tourmaline Partners, European business head Andrew Walton says the firm has seen a growth in trade flows from clients, notably a heightened demand from managers that “want to work with us in a supplemental capacity”, referring to clients that outsource a portion of their trading to Tourmaline.
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