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The Buy-Side Trader Is Getting Outsourced in Coronavirus Crisis

June 1, 2020, 12:10 PM

A once-in-century disruption to securities trading is intensifying a revolution in how some investment firms conduct business.

With at-home traders navigating the wildest market swings in history, more money managers are tapping outsourcing companies to buy and sell financial assets on their behalf. With their employees at risk of falling sick or losing regular access to market venues, the buy side in lockdown is turning to a booming industry that’s drawing big-gun entrants including State Street Corp., AllianceBernstein Holding LP and Wells Fargo & Co.

In so doing, the largest providers are reporting a surge in revenues as transaction ...