Trading

UK asset managers flock to outsourced trading in battle against costs

A growing number of fund groups are handing over trading responsibilities to third parties. The trend is not just being driven by cost savings

Fund groups, which have for years passed middle and back office functions to third parties, are increasingly looking to  outsource front office activities such as trading
Fund groups, which have for years passed middle and back office functions to third parties, are increasingly looking to outsource front office activities such as trading Photo: Paul Painter/Alamy

Britain’s asset managers are in a Catch-22 when it comes to their trading desks.

Funds want access to international markets and cutting-edge technology to be competitive, but that requires hefty investment at a time when investors are putting costs under the microscope.

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