Funds urged to scrutinize outsourcing models to reduce data leakage
Asset managers can choose from a range of trade-outsourcing models, but some traders say certain providers’ data-sharing techniques carry greater risk of information leakage.
Asset managers go to great lengths to protect their trading data and techniques, using a combination of surveillance and threats of legal action, not hesitating to act against staff or competitors suspected of stealing confidential information.
Yet despite the secretive nature of the industry, many funds have opted to tap into outsource trading solutions. Last year, a Northern Trust survey of 300 asset managers found that 85% had either outsourced or were interested in outsourcing their trading
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