Asset manager BlackRock plans to develop its own global trading platform in a bid to save clients money on trading fees currently paid to Wall Street banks.
According to an internal memo seen the Financial Times, BlackRock is planning a "new world-class global trading platform across the firm" so it can cross client trades internally.
Currently, Wall Street banks such as Goldman Sachs trade securities for buy-side firms like BlackRock. According to the FT, BlackRock insists it does not want to marginalise Wall Street and will rely on banks for liquidity.
Minder Cheng, who joined BlackRock through the planned Barclays Global Investors (BGI) acquisition will lead the development of the platform. The BGI deal will make BlackRock the world's biggest money manager.
The asset manager will take advantage of its BlackRock Solutions unit to provide the technology for the platform.
BlackRock to launch trading platform - FT