Last month, CAPIS was proud to sponsor Security Traders Association’s (STA) 90th Annual Market Structure Conference in Washington, D.C, which gathered financial services experts and thought leaders to discuss some of the biggest issues facing the capital markets today.
TabbFORUM Editorial Director Michael Scotti was onsite, where he sat down with our Director of Institutional Sales, Christopher Hurley, to discuss the various factors that are driving institutional fund managers and RIAs to outsource key services – particularly trading.
In the interview, Chris explains why outsourcing has continued to be a major industry trend, citing both technological advancements and regulatory shifts. CAPIS has observed the impact firsthand, as its client base is largely comprised of active managers who, Chris states, are facing significant headwinds in these areas. The rise of passive index funds and ETFs, along with increasing technology, compliance and hiring costs and declining revenues, have all spurred active managers to outsource their middle- and back-office functions in the past. Now, outsourced trading has come into focus.
Chris explains that the reasons for embracing outsourced trading can vary from manager to manager, so it is crucial that outsourced trading firms intimately understand their clients’ logic and goals. CAPIS strives to operate in a true partnership capacity, taking the time to understand its prospects’ challenges and walk them through the pros and cons. Does the desire to outsource trading stem from staffing issues? A loss of assets? A new product launch that requires the firm’s full attention? Whatever the case, these factors can heavily impact the final decision and the nature of the outsourced trading relationship, requiring input from multiple traders.
Chris goes on to highlight CAPIS’ differentiated business model, which is based on three core pillars: trading, transparency and trust. He emphasizes that managers should select an outsourced trading partner that does not have conflicts of interest – such as proprietary trading operations or affiliated venues – that may interfere with achieving best execution. He explains how CAPIS’ high-performance technology enables routing to over 40 execution venues, with its experienced team always on the lookout for the best venues and trading platforms to align with clients’ interests. Together, these factors have solidified a strong sense of trust between CAPIS and its loyal client base throughout the 45 years since its founding.
Lastly, Chris touches on CAPIS’ other offerings, including its pioneering commission management capabilities, its fixed income and derivatives trading desks and its WRAP/custodial solutions catered to the needs of RIAs.
You can watch the full interview with TabbFORUM’s Michael Scotti here.