Outsourcing Hits Buy-Side Traders as Firms Look to Trim Costs

The video discusses the challenges asset managers face due to the growth of the passive industry, leading to cost-cutting measures. It highlights the high costs of trading desks, prompting many managers to outsource trading. By 2022, a significant portion of investment managers are expected to outsource trading. The impact of electronic trading and automation is also explored, with a focus on the shift from in-house to outsourced trading strategies, even among large firms.

What trend is expected among investment managers regarding outsourcing trading by 2022?

What factors might lead a large asset manager to keep trading in-house?