Hong Kong Protests Are Hurting the Financial Hub's Allure as Clients Cancel Visits, Firms Shelve Parties, and Workers Eye Exits — Business Insider

Cracks are starting to appear in Hong Kong's status as Asia's financial hub. As protests continue to rage on over a now-withdrawn bill that would allow Hong Kong residents to be extradited to mainland China, the economy has suffered. Retail sales in the city have slumped and tourists are staying away, and the impact of the skirmish on Hong Kong's economy has prompted some economists to warn of a recession.

Here’s How Outsourced and Supplemental Trading Solutions Reduce Operational Risk and Cost

Over the past decade, the trading landscape has transformed dramatically for market participants across all sectors and asset classes. For the buy side, continued electronification of trading has caused technology costs to rise considerably, and head counts on buy-side trading desks have contracted correspondingly. Although the largest banks and brokers have the operational scale and infrastructure needed to keep up with this pace of change, many on the buy side do not have the same resources at their disposal. At the same time, many buy-side firms are actively seeking access to liquidity in new markets or instruments (in order to grow or just to keep up with the competition), and that requires additional spending as well. Throw in additional regulatory pressures, such as the new trade reporting requirements for European firms under MiFID II, and it becomes clear that operational complexity and cost have become a significant burden for institutional investors.

Asset Managers Farm Out Trading as Costs and Complexity Climb — Reuters

A heavier regulatory burden on money managers, razor-thin margins and rapid technological developments in trading are driving many to cut costs and hire outside firms to handle their day-to-day trading. The pace of demand has accelerated this year in particular as asset managers feel the pinch following the introduction in 2018 of the EU Markets in Financial Instruments Directive (MiFID II) which slapped more onerous paperwork on them.

Outsourced Trading: The Future of the Buy-Side Desk? - The TRADE

Outsourcing hasn’t historically been linked to front-office activities and the buy-side trading desk, but the notion of outsourcing trading and execution is starting to turn heads at asset management 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.

How Supplemental Trading Can Boost Results for the Buy Side

Broker dealers and asset managers are undergoing a period of significant and radical change, largely driven by regulation, advancements in trading technology and the impact of passive management. As if these challenges weren’t enough, equity commissions are down 45% since 2009. In no uncertain terms, players on both sides of the fence are being forced to rethink past practices.   

Supplemental Trading: Expanding the Reach of Buy-Side Traders — Money Management Executive

Broker dealers and asset managers are undergoing a period of significant and radical change, largely driven by regulation, advancements in trading technology and the impact of passive management. As if these challenges weren’t enough, equity commissions are down 45% since 2009. In no uncertain terms, players on both sides of the fence are being forced to rethink past practices.   

Outsourcers Eye Bigger Role in Funds’ Fixed Income Trading — Risk.net

Exoé, Linear Investments and Tourmaline Partners may not be household names but they are quietly reshaping the way asset managers trade. Providers of outsourced trading such as these are enjoying fast-rising revenues and their prospects are sunny. One reason: an opportunity to venture deeper into fixed income from their traditional home of equities trading. “There are more and more firms talking to us about fixed income and how that would work,” says Chris Hurley, director of institutional sales at Dallas -based Capital Institutional Services, another provider of a service that allows firms to hand over some or all of their trade execution to an outside desk.

MiFID II & Best Execution: How Leaning on Specialists Can Help

More than a year has passed since the introduction of new best execution requirements under MiFID II, but for many buy-side firms the difficulties and costs of complying with these rules have only continued to grow. Of course, the intention behind MiFID II is to create additional safeguards in order to protect the market and its participants from a repeat of the 2008 financial crisis. The architects of the Directive may even have expected that the new rules would be relatively straightforward to implement, particularly with many instruments having already been pushed onto lit, centrally cleared exchanges under EMIR and MiFIR. But we now know that the new requirements have created an additional layer of complexity for most market participants, not just those few that may have been failing to achieve best execution in the first place.

Tourmaline Partners Adds to Senior Leadership in Australia, Addressing Continued Growth in the Asia-Pacific Region for its Outsourced Trading Business

Tourmaline Partners, LLC, one of the world's leading outsourced trading solutions firms, today announced the hires of two senior professionals, spurred by continued growth in Australia and Asia. Matt McShane has joined as Director of Operations for Asia, while Simon Twiss has joined as Director of Pan-Asia Trading.

Outsourced Trading: Opportunity Amid Disruption — Markets Media

A recent survey of Traders Magazine readers, representing a broad spectrum of buy-and sell-side professionals, found that 28% work for firms that have either already outsourced some of their trading and back-office operations or are actively considering doing so. That may not sound like a big number, but given outsourced trading’s longstanding reputation as a niche service for hedge funds only, it qualifies as a significant figure.

The Growth of Outsourced Trading

In the US, a buy-side firm outsourcing its trading desk to a specialist provider isn’t new; but in Europe, it’s been less common, until recently. In this Financial Markets Insights video, Mike O’Hara of The Realization Group talks to Aaron Hantman, CEO, and Andrew Walton, Head of European Business, at Tourmaline, one of the leading providers of outsourced trading solutions to the buy side, about the drivers behind the trend and which functions are appropriate for outsourcing.