BlackRock to start trading platform to lower costs

BlackRock is planning to launch an internal trading platform next year, a move that could put a pressure on the profits of many Wall Street firms, said a media report.

BlackRock, the world's largest money manager, expects to launch an internal trading platform next year in a move that would strike at the heart of the profit centres of many Wall Street firms, said a report from Financial Times.

The report said that the world’s largest fund manager is employing programmers and other staff to build the platform which will lower its trading costs.

We are developing the technology in-house to offer better value by lowering trading costs,” said the report quoting Rob Kapito, president, BlackRock.

The trading platform allows its clients to trade with each other without going through a Wall Street bank.

But, the company maintained that the plan is not aimed at marginalizing the Wall Street players.

By the end of September 2010, BlackRock’s assets under management totaled $3.45 trillion spread across equities, fixed income, cash management, alternative investment, real estate and advisory.