Around 30% of buy-side equity traders in the US, Europe and UK taking part in a new study from Coalition Greenwich, in partnership with LSEG, expect their firms to consider adding an outsourced provider for cross-border trading in the next two years, up from 5% in 2020.
Jesse Forster, senior analyst at Coalition Greenwich market structure and technology, and author of Cross-Regional Equity Trading: Outsourcing for Outperformance, said: “By now, almost everyone understands that success in equity market trading will require a combination of human skill and technology.”
“Today’s new breed of fintech-based outsourced trading platforms offers access to an intriguing mix of advanced technology, market expertise and seamless integration with internal systems,” Forster added
The study found that two-thirds of equity traders believe outsourced trading desks can improve access to liquidity in international markets and believe that adding outsourced trading capabilities can enhance execution quality and trade performance.
Between a quarter and a third of study participants think supplementing internal capabilities with outsourced trading will help their organisations access new markets and asset classes, obtain better colour on international markets, and customise workflows and strategies.
“Equity market participants are recognising the potential for technologically adept providers, with highly skilled traders placed in local markets, to enhance their own capabilities in cross-border trading,” Forster added.
© Markets Media Europe 2023
