One of the lessons learned from the pandemic-induced lockdown and remote staffing was that virtual securities trading can work. This has ignited a new wave of interest in outsourcing all or part of a firm’s front-office trading operation. More investment managers and chief operating officers (COOs) at asset managers and other buy-side firms are opting to execute trades and run their portfolios via outsourcing arrangements. At the same time, a variety of providers can offer a multitude of services in addition to processing transactions. So, as firms trend in this direction, where does that leave the middle- and back-office operations teams? How likely are firms to outsource operations along with front-office trading?
This panel will explore several Ops issues:
• What are the benefits of outsourcing Ops and the front-office?
• How is this new wave of outsourced trading different from previous efforts?
• What would cause a firm to outsource securities trading and the middle- and/or back-office functions?
• Would some providers hire current middle- and back-office teams? Or would current staff be laid off?
• For Ops teams that stay inhouse, how do their jobs change if front-office trading has been outsourced?
• What are the major downsides of outsourcing front-office trading as they pertain to Ops?