What the UBS Outsourced Trading arm closure means for hedge funds considering alternatives
UBS recently shuttered its outsourced trading business, highlighting a key truth: bigger isn’t always better. When outsourced trading is a small part of a larger business, priorities can shift unexpectedly, leaving clients in a precarious position. UBS’s core business was never outsourced trading, so it’s unlikely it moved the needle on global revenues.
What managers should do next for outsourced trading?
Some managers may be tempted to think that the outsourced trading model is flawed and that it is best to go back to building an internal trading desk.
While some precautions should be considered – you should not dismiss outsourced trading completely. The benefits are transformational, and the drawbacks of “bundled” services can be avoided with the right partner.
There are a few considerations to avoid disruption in OT services.
Key considerations for outsourcing trading the right way
Investment managers should be cautious of the quality control risks when working with large firms that offer outsourced trading as a side or ancillary business. When outsourced trading is a non-core business line, the potential for subpar execution, lack of dedicated attention, hidden costs, and misalignment with client needs are far more likely. The firms may not prioritize trading quality, limit access to global liquidity, or sell order flow to offset “free” services. In the long run, these implicit costs, particularly around best execution, have a significant negative impact on a client’s performance.
UBS’s outsourced trading clients were given just three months to transition. Will they opt for another “bundled solution,” or choose a firm solely dedicated to outsourced trading? At Meraki Global Advisors, outsourced trading is our entire business. Every trade and relationship matters because its core to our operation and values. We’re here for the long term, dedicated to putting our clients first.
Outsourced trading done right: Integrated Trade Management features
Here’s how we serve our clients at Meraki:
- Dedicated Attention: We are a customer-centric firm w/ a 3:1 client-to-trader ratio. No competing priorities because outsourced trading is our only business.
- Integrated Trade Management: We are a true extension of your investment team, taking time to understand your strategy and portfolio management style.
- Unmatched Control: Maintain direct relationships with your executing brokers and PBs, preserving vital relationships.
- Cost Efficiency: Transform your trading desk into a scalable, variable cost center aligned with your performance.
- Tailored Solutions: We integrate directly into your workflow, operating as a true partner.
- Conflict-Free Model: No brokerage accounts, no clearing agents, no hidden agendas. The most aligned model in every aspect.
- Global Expertise: Access our experienced team across geographies and asset classes.
Interested in learning more? Read our latest whitepaper about retaining full control with outsourced trading.
If you’re affected by the UBS announcement and looking for a dedicated partner who prioritizes you, let’s talk. I’m also more than happy to connect you with any of our clients—because our results speak louder than any pitch could.
Meraki Global Advisors LLC is a FINRA registered broker-dealer and member of SIPC headquartered in Park City, UT. The content provided herein is not an offer, solicitation or recommendation of any securities. Meraki and its representatives make no investment recommendations whatsoever. Past performance is not an indication of future results. This document may not be duplicated or copied, is protected by copyright law and may contain privileged or confidential information. Information contained herein does not constitute tax, legal or other professional advice. Content is for informational and educational purposes only. All rights reserved 2025.
For more information, visit the Meraki Global Advisors website and LinkedIn page
Contact:
Mary McAvey
VP of Business Development
(646) 666-7041
mm@mga-us.com
