Outsourced trading becoming side effect of virus for managers
Gary Paulin said value is the metric that firms should consider on trading.
Some money managers and hedge funds are looking to outsource their trading desks as the coronavirus pandemic continues to shine a spotlight on costs, business continuity plans and the unexpected success of a decentralized workforce.
Outsourced trading has two main functions for buy-side investors, sources said. "First, it allows them to reduce fixed costs by converting head count to a scalable resource that can be dialed up or down" — something that came into its own during the pandemic, said Chris Jenkins, managing director at TORA Trading Services Ltd., who splits his time between Jersey, Hong Kong and San Francisco.