BlackRock wants own trading platform

BLACKROCK plans to create its own global trading platform which could help save its clients significant amounts of money in trading fees.<br /><br />The asset manager, set to become the world&rsquo;s largest money manager with roughly $3 trillion (&pound;1.79 trillion) in assets when it buys Barclays Global Investors (BGI) later this year, is in the early stages of developing the platform, says a leaked memo.<br /><br />Minder Cheng, who came to BlackRock through the planned BGI acquisition, has been appointed to lead the development of a &ldquo;new world-class global trading platform across the firm,&rdquo; it said.<br /><br />The platform will &ldquo;fully realise the cost efficiencies and trading opportunities across all asset classes as we become one of the largest trading operations in the world&rdquo;, it added.<br /><br />Traditionally, asset managers like BlackRock rely heavily on Wall Street firms like Goldman Sachs to trade securities for them. Some of the asset management industry&rsquo;s biggest players have recently balked at the trading fees Wall Street banks can earn and begun work on setting up their own platforms to cut costs.<br /><br />But BlackRock is expected to continue to use Wall Street firms to provide liquidity.