Meeting the execution challenge: How asset managers can cut the cost and complexity of trading
Asset managers are operating in an environment where execution has become more complex and demanding, and has a greater impact on broader business performance. A combination of regulatory change, fragmented liquidity and fee pressure is making it harder and more expensive to implement investment strategies efficiently.
In many jurisdictions, trading desks have to contend with more onerous regulatory burdens: for example, in May 2026, the European Securities and Markets Authority strengthened its rules on pre- and post-trade transparency1, and a shorter settlement cycle is due to be introduced across Europe – including the UK – next year2,3. As of October 2027, this will result in the standard settlement cycle being cut from two business days (T+2) to one (T+1).
Another challenge is that liquidity is becoming more and more fragmented and harder to access. This can have a material impact on asset managers’ ability to effectively implement their investment strategies. Trades may need to be routed across multiple platforms as a result – adding an extra layer of complexity.
But at the same time as regulations and liquidity issues are making execution more expensive, asset managers are facing significant bottom-line pressure from fee compression. This puts the onus on firms to minimise execution overheads in order to remain competitive.
Responding to and managing these challenges is a strategic imperative: execution capabilities have a major impact on a firm’s cost base, the outcomes it can deliver for clients and its ability to scale.
In addition, execution can act as a significant drain on operational capacity – diverting resources away from the core activities that add the most value, and shifting attention from the likes of investment performance, portfolio management and client servicing.
So how can asset managers reclaim this time, cut costs and get back to focusing on the strengths that really set them apart? By outsourcing their trading requirements to an external execution partner, firms can benefit both strategically and operationally.
Lower overheads and compliance support
For asset managers looking to reduce overheads, an outsourced model can offer a more efficient way to access execution capability in a simpler and more cost-effective way. Many firms have seen their own trading technology fees increase at a rapid rate in recent years, and outsourcing to a provider with the scale to absorb such fee increases can make sense. In addition to reducing the expense associated with execution, external services can help firms remain compliant by keeping pace with fast-moving regulatory developments across jurisdictions.
Second, for data to be usable, it needs an environment that enables analysis, modelling and action through AI tools, developer workspaces and connected business intelligence capabilities.
Broad access to liquidity
An external provider can also help asset managers address the issue of fragmented liquidity. Asset managers need access to broad liquidity across asset classes and require round-the-clock access to global markets. This enables them to defend execution quality while also effectively and efficiently implementing their broader investment strategies. Meanwhile, the ability to transact with a wide range of counterparties means that trading can remain consistent even when market conditions are challenging.
Maintaining control
Outsourcing a firm’s trading function does not mean relinquishing control or oversight of key relationships. Under an agency model, asset managers retain oversight of governance, counterparty relationships and trading activity, while benefitting from the infrastructure and expertise of a specialist partner. In practice, this means firms can continue to set the framework within which trading is executed, maintain visibility over activity and outcomes, and keep responsibility for key relationships and governance. Transparency and accountability remain central, helping asset managers preserve control while reducing the operational burden.
A resilient, scalable solution that can support strategic growth
The decision to partner with an external execution service can be a valuable element in an asset manager’s long-term growth strategy. An outsourced trading platform can be tailored to firms of any size and is designed to adapt as trading needs become more complex. As businesses grow or look to enter new regions, the model can scale with them – without having to increase headcount or support infrastructure. In that sense, outsourcing is not just an operational choice. It can help ensure the execution capability supports growth rather than constraining it, giving firms the flexibility to expand while keeping internal focus on the areas that drive the greatest value.
For asset managers, execution is no longer simply an operational consideration. The right model can help firms manage cost, maintain control and access liquidity more effectively, while giving them the flexibility to scale as their needs evolve. In a more demanding market environment, that can make execution a real source of competitive advantage.
Amundi Execution Services supports more than 40 clients in Europe, including Groupama AM in France, Fineco Asset Management in Ireland and AJ Bell in the UK.
We offer phased implementation, and the service can be bundled with middle-office and confirmation solutions as required. In addition, we provide ongoing support and technical advice.
