The COVID-19 Pandemic may prove yet to have been a catalyst for long lasting change in the way financial services firms organise their businesses. The Capco Intelligence piece, ‘Outsourced Trading: Who, What & Why Now’, published last week, highlights that change is afoot in one aspect of investment management.
In fixed income, we are certainly nearer the start of the outsourcing journey than in equities. Noting this is important. Services catering to execution in bonds and derivatives should be built to deliver benefits particular to participants in these markets; cost transparency, simplified market access to diverse liquidity, data-led execution triggers to limit impact in less liquid markets and fair assessment of execution outcomes.
At Ediphy, we believe that the use of smart technology enables outsourced fixed income trading to be a useful companion to traditional execution methods.
To find out more please get in touch or download the Capco Intelligence paper.