Selecting a Provider of Outsourced Trading for Asset Managers

Executive Summary

Outsourced trading desks have existed for some time, but interest in such offerings has intensified in recent years as the asset management industry faces mounting pressure in terms of fees, fund performance, and regulation, compelling even larger asset managers to outsource at least part of their trading desks. In this report, Opimas outlines areas that should be evaluated when selecting a provider of outsourced trading services and reviews the services of 19 different providers.

The criteria identified to assess outsourcers include:

  • Size, scope and structure of team
  • Execution quality/transaction cost analysis
  • Execution venues
  • Cost
  • Instrument coverage
  • Order handling
  • Conflicts of interest
  • Post-trade offering
  • Order and execution management systems
  • Surveillance capabilities
  • Commission management

The outsourcers covered in this report include:

  • Amundi Intermédiation
  • BNP Paribas Securities Services (BP2S)
  • BTIG
  • Capital Institutional Services (CAPIS)
  • CF Global Trading
  • Cowen
  • Dalzell Trading
  • Exoé
  • Jefferies Financial Group
  • JonesTrading Institutional Services
  • Linear Investments
  • Natixis Asset Management Finance (NAMFI)
  • Northern Trust
  • Outset Global
  • Russell Investments
  • Société Générale Securities Services (SGSS)
  • Tourmaline Partners
  • Weeden Prime Services
  • Williams Trading

Figure 7. Asset Class Coverage

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