There is no doubt that jittery equity markets and the terrorist attacks of September 11 have taken their toll. Volumes may not be as buoyant as last year, reflecting the overall mood, but nonetheless portfolio trading is holding its own. Fund managers, who are keeping an even more watchful eye on trading costs, are increasingly using the tool because it is one of the most efficient and effective ways to shift large baskets of stocks and make other asset allocation adjustments.

The business is also being driven by a wider range of clients and is no longer the preserve of the index tracker. Emmanuel Heurtier, global head of equity portfolio trading for BNP Paribas, says: 'Initially, portfolio trading was used by the quantitative fund manager, but today we are seeing more and more traditional as well as hedge fund clients using this product for cost and efficiency reasons.'