BlackRock and MarketAxess have announced an expanded partnership aimed at simplifying credit trading processes for their shared clients through the integration of MarketAxess’ tools and automation features. This initiative is set to enhance the digitization of global credit markets by leveraging Aladdin’s powerful portfolio management system.
Expanded Collaboration to Boost Efficiency
The strengthened partnership will offer joint clients increased access to advanced trading solutions by embedding MarketAxess’ innovative tools directly within BlackRock’s Aladdin platform. This integration is expected to boost trading efficiency by streamlining workflows and providing deeper connectivity between the two platforms.
A Decade of Cooperation
Since the partnership began in 2013, BlackRock and MarketAxess have focused on advancing data analytics and expanding Open Trading capabilities. This latest phase of collaboration aims to bring MarketAxess’ credit trading protocols, such as its automation tools, into Aladdin’s order execution management system (OEMS).
Rich Schiffman, Global Head of Trading Solutions at MarketAxess, expressed excitement about the enhanced collaboration, saying: “Our long-standing relationship with BlackRock has continuously evolved to meet our clients’ liquidity and workflow needs. We are pleased to see the growing adoption of our automation protocols, with some clients now conducting over 90% of their trading volumes through our platform.”
Schiffman also highlighted that MarketAxess’ advanced features like Adaptive Auto-X, RFQ solutions, and Open Trading will now be more accessible to Aladdin clients.
Future Prospects for Credit Markets
Aladdin, BlackRock’s renowned investment management system, is known for its seamless unification of the trading process across various institutions. The integration with MarketAxess will allow traders to utilize sophisticated credit trading tools within Aladdin’s ecosystem, driving further digital transformation in the credit market sector.
MarketAxess recently reported a significant boost in trading activity, with a 39.6% increase in total average daily volume (ADV) last month, reaching $41.6 billion. US high-grade and municipal bond trading were key contributors, with credit ADV climbing 27%, US high-grade ADV increasing 33.7%, and municipal bonds surging 49.5%.
