Upping the Game with Outsourced Trading

In any competitive arena, success hinges on the quality of your game plan. Just as athletes rely on precise strategies to outmaneuver opponents, asset managers must craft thoughtful approaches to thrive in shifting markets. The difference between reacting and truly excelling often comes down to the strength of the game plan guiding each move.

For many asset managers today, the game plan revolves around finding new sources of growth in increasingly competitive markets. That can mean moving from reactive cost-cutting to proactive strategic moves, and outsourced trade execution is emerging as a critical enabler of that shift.

In a recent Northern Trust global asset owner peer study of 180 senior leaders, 45% of respondents said they are currently outsourcing or have already outsourced trade execution, signaling a broader industry move toward operational transformation. In this environment, outsourced trading isn’t just a support function; it’s a strategic play. For asset managers looking to be more strategic, outsourced trading can be a key part of the game plan.

We spoke with Stephanie Farrell, Head of Integrated Trading Solutions, Americas, to understand the strategic considerations—from market access to regulatory agility—driving this shift.

1. What are you hearing from asset managers looking to grow in today’s environment?

Asset managers are trying to position themselves for growth, but with market volatility, evolving regulatory requirements, and mounting pressure on margins, they’re being forced to think differently about scale. Many are realizing that legacy operating models, especially in trading and operations, aren’t built to support the level of agility they now need. As a result, outsourcing is no longer just a cost-saving tactic; it’s becoming a way to unlock capacity, access expertise, and move faster. Managers want to stay focused on what drives returns and find strategic partners that can take on the rest.

2. How can outsourced trading help asset managers that want to expand into new markets?

Trading across jurisdictions comes with layers of complexity, from local regulations to different settlement practices. For many managers, building global infrastructure internally is a costly, time-intensive endeavor. Outsourcing can offer a faster route: tap into a provider that already has global reach, local expertise and the crucial infrastructure to enter new markets when the opportunity arises. This allows managers to enter new markets with confidence and scale.

3. What role does outsourced trading play in helping firms access new asset classes?

Entering unfamiliar asset classes can stretch internal teams thin, especially if the firm lacks the scale or expertise to trade efficiently. A strong outsourced trading partner offers instant access to asset class specialists and execution expertise for a wide array of classes.

4. How can a strategic outsourced trading partnership help streamline operations?

In a fragmented operational model, processes are inefficient, and errors are harder to detect and resolve. Consolidating functions — across the front, middle, and back office — into a single outsourced model can simplify operations, reduce vendor fatigue, and allow for greater accountability and transparency. And 34% of asset owners from our study say they want service providers that support them across the entire trade lifecycle, so there is an appetite for more streamlining.

5. How can outsourced trading free up internal talent for more strategic oversight and decision-making opportunities?

Settling trades correctly and efficiently is non-negotiable, but it doesn’t need to consume the attention of a firm’s internal team. Outsourcing the execution and operational side of the trade lifecycle allows managers to focus internal teams on higher-value tasks. Rather than managing processes, they can shift toward oversight, governance, and innovation, adding more value across the investment lifecycle.

6. How can outsourced trading support firms’ need for advanced analytics and transparent reporting?

As reporting demands grow and investors seek greater transparency, managers need to deliver more than just performance; they need data-rich insights. In fact, 40% of asset owners from our study feel transparency is currently lacking amongst their asset managers, highlighting the growing expectation for deeper, more accessible information. Meeting this demand requires robust data infrastructure and advanced analytics, and the best service providers offer these capabilities, giving managers access to better information and state-of-the-art tools. This elevates reporting capability and allows firms to respond to increasing scrutiny with confidence.

7. What are some of the key regulatory or market shifts prompting managers to reevaluate their trading operations, and how can outsourced trading help them stay ahead?

With the shift to global T+1, and the possibility of T+0, regulatory and operational pressures are intensifying. The move to T+1, which already took place in the U.S., Canada and Mexico in 2024 and India in 2023, is now being considered in the rest of the world and could further impact global trading operations. A move to T+1 in additional Asian markets, for example, could require that managers in the Americas and Europe staff teams on weekends to accommodate shortened settlement cycles across time zones.¹ Many managers don’t have staff or systems in place to support near-real-time settlement or to meet global reporting obligations. This is how outsourced trading providers can help. They can bring scale, continuity, and a real-time model that adapts quickly to change. From regulatory guidance to trade lifecycle ownership, an outsourced provider can help managers stay compliant, competitive, and ready.

Winning with the Right Game Plan

In today's market environment, outperforming the competition is about more than just reacting—it's about crafting a winning strategy and executing it with precision. As the playing field evolves, those who embrace outsourced trading as part of their game plan position themselves not only to survive, but to excel. Whether it’s expanding distribution, improving operational efficiency, or preparing for regulatory change, the right provider can offer more than execution support; they can help firms up their game with greater flexibility, transparency, and confidence.

¹ Ignites Asia - Hong Kong T+1 shift could force US investors to work on Sunday afternoons

Stephanie Farrell
Head of Integrated Trading Solutions, Americas
Amy Thorne
Head of Integrated Trading Solutions, EMEA
Robert Arnott
Head of Brokerage, APAC

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Upping the Game with Outsourced Trading

Meet The Experts

Stephanie Farrell

Amy Thorne

Robert Arnott