ITG CEO Robert Gasser wondered if the financial crisis had permanently affected the firm’s business model. A leader in trade analytics and execution for institutional equity investors, ITG had grown since its establishment in 1987 in step with the dramatic rise in equity trading volumes. During 2009, however, investors curbed their equities trading, depressing ITG’s heavily commission-based revenues, and earnings plunged by 63%.
Resulting in ITG’s first unprofitable quarter since 1988. Gasser was convinced that ITG’s challenges were not simply a function of shrinking trading volumes; 2009′s downturn revealed limits of client willingness to pay for the value ITG delivered, and the infrastructure ITG had constructed to support clients with customized software tools and technical support had grown well beyond sustainable levels. With his management team. Investment Technology Group…
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