BlackRock’s new bond trading system won’t change its behaviour: CEO says
BlackRock's new bond trading system will not change its behaviour or relations with the sell side, the world's largest money manager's chief executive Laurence Fink said.
Speaking to analysts during a conference call on BlackRock's first-quarter results on Wednesday, Fink said, "This is not going to transform BlackRock in any way. This is not going to change our behaviour, our relations with the sell side."
Fink claimed that New York-based-BlackRock was just responding to the regulatory regime which was changing the future ways of the business.
He explained that the company's new trading platform was designed to bridge a gap in trading which might emerge in case Wall Street companies and banking giants cut their participation in bond trading.
The new bond trading network is related to the company's Aladdin risk management service that covers assets worth around $10 trillion. Customers are using Aladdin risk management service for trading bonds among themselves. With the new system they will be able to bypass Wall Street dealers.
However, BlackRock's new bond trading system has yet to get regulatory approval.
BlackRock, which is partly owned by PNC Financial Services Group Inc and Barclays Plc, has assets worth 2.30 trillion pounds (around $3.7 trillion) under its management.