(Adds context and comment from BlackRock)
NEW YORK May 14 Trading platform Tradeweb Markets LLC will provide fixed-income securities and derivatives pricing in-house on BlackRock Inc's investment and risk management system, BlackRock, the world's largest money manager, said on Wednesday.
Through the partnership, users of BlackRock's Aladdin investment management platform will be able to use the system's dashboard to see pricing from more than 40 liquidity providers on Tradeweb's network, rather than go outside to get quotes from dealers, as was previously the case.
The move is, in part, a way to boost trading and liquidity in the bond market at a time when Wall Street banks have cut back on providing liquidity and have shed their holdings of corporate debt and mortgages because of tighter regulation of capital requirements.
"Given regulatory and workflow pressures in the rates and derivatives markets, partnering with Tradeweb to aggregate liquidity and increase efficiencies in trading is a natural extension" of the platform, the incoming head of BlackRock's Aladdin business, Sudhir Nair, said in a statement.
In addition to gaining access to pricing and historical information, Aladdin clients will be able to "click to trade" from their dashboard, said BlackRock spokeswoman Lauren Post. While users will be able to make transactions on the Aladdin screen, all of the actual trading will happen at Tradeweb, she said.
BlackRock has partnered in a similar strategic alliance once before, with electronic credit trading platform MarketAxess Holdings Inc last year.
Aladdin, a proprietary system that provides data to help clients manage their portfolios, is a key business for New York-based BlackRock, which manages $4.4 trillion in assets.
Tradeweb is majority-owned by Thomson Reuters. (Reporting by Ashley Lau; Editing by Steve Orlofsky; and Peter Galloway)