News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

High settlement costs are engendering self-reliance

Reduction of outward liquidity flows and crossing trades internally can help profits

Portfolio traders are used to dealing with an array of variables when pricing and executing complicated transactions involving heavy volumes of securities. But they also must deal with a pair of niggling constants.

The disproportionately high cost of settling cross-border trades in Europe, coupled with increasing competition among banks and brokers, is pushing portfolio trading desks to become more self-reliant in their search for a solution that will both lower their overheads and create competitive advantage.

WSJ Logo