Outsourced Trading Desk
We covered topics such as retail order routing and the debate over payment for order flow (PFOF). We examined the resurgence in alternative trading systems (ATSs), the rise of outsourced trading desks for the buy side, and efforts to regulate fixed-income trading platforms as registered venues.
With the demand for increased efficiency and fee pressure from low-cost passive index strategies, in recent years, outsourced trading desks have gained traction with small and mid-sized asset managers. Among the benefits are the economies-of-scale that can be achieved because the capability is set up to act as an inhouse execution desk for multiple buy sides.