Background and Current Observations UK Chancellor of the Exchequer Jeremy Hunt recently announced that in 2024 he will implement many of the suggested changes outlined in the UK Investment Research Review from Rachel Kent of Hoagland Lovells (Investment Research Review Chair). Yet, how the industry will adapt to a new rule set, and the walk […]

Tourmaline Partners’ fastest growth silo and largest total addressable market is supplementing the trading reach of multi-billion-dollar investment firms to liquidity and market intelligence.  As we scale with this cohort and as the industry embraces outside trading expertise, the demand for transparency and sound corporate governance has risen.  This is evidenced by the detailed RFPs […]

As the acceptance of supplemental trading grows, one of the more popular use cases is helping buy-side traders source liquidity in small and mid-cap stocks. Coalition Greenwich, in their December 2022 report – Globalisation of Algorithmic Equity Trading: A Buy-Side View, highlights that fragmented markets and a general lack of liquidity are key challenges for buy-side […]

Tim O’Halloran, Managing Director at Tourmaline Partners recently joined Joe Signorile of Our Peer Group (OPG) for the latest installment of OPG Insights. With years of experience in outsourced and supplemental trading, Tim offers his unique perspective on commission wallet management and CSA funding. Key topics of discussion include: Managing Commission Wallets CSA Funding Best […]

The outsourced trading space has seen explosive growth, and that means more buy-side firms than ever are seeking to evaluate the various offerings on the market. When it comes to assessing providers, decision makers should prioritize three key measuring sticks: Independence, Scale and Expertise. With these core features as a guide, buy-side firms can more […]

Interest in derivatives is at an all-time high. Last year, the Options Clearing Corporation (OCC) reported clearing a record-setting 9.93 billion total contracts, a 33.7% increase over 2020. With the rise of retail trading platforms, greater use of equity options by institutional investors and the knowledge that traders can more easily employ options trading to express their views in a leveraged manner, liquidity in these markets has increased, creating a self-fulfilling prophecy of greater adoption.

With their recent study, A Deeper Dive into the Outsourced Trading Evolution, Coalition Greenwich and Shane Swanson have done an exemplary job of educating the marketplace on the types of providers and use cases for both outsourced and supplemental trading.

Tourmaline Partners recently commented on how Supplemental Trading – augmenting the reach of buy-side traders – has been our fastest-growing business and largest total addressable market. Trading offshore markets has been a key driver of this growth.

According to Bloomberg Intelligence’s recent survey on U.S. Institutional Equity Trading, liquidity access, technology, COVID/WFH and managing commission wallets are the four most significant concerns of buy-side traders. Tourmaline Partners’ proven ability to address these challenges for investment managers of all sizes has been integral to our growth.

The growth of outsourced trading has been remarkable to witness. When Tourmaline Partners was founded more than a decade ago, our plan was to address a gap in the marketplace. A lot has happened in 10 years. Today, numerous industry studies highlight the increased demand for, effectiveness of and satisfaction with outsourced trading. We see these trends reflected in the expansion of our own business.