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BlackRock Puts Bond-Trading Platform Out Of The Misery That You Put It In

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All BlackRock wanted to do was make things easier for you. It had no prurient pecuniary motive in launching its own corporate bond-trading platform. It just wanted to help. That's how it's become the world's largest money manager, after all.

But now you've ruined everything, and sent the charitable BlackRock's most philanthropic effort, Aladdin Trading Network, to the scrap-heap, leaving you only with the impersonal, extortionate MarketAxess.

BlackRock's effort, still in its initial testing phase, has languished with few trades taking place each day, according to people familiar with the matter. With the addition of the MarketAxess trading portal, BlackRock will shelve the development of its own platform, the people said.

A spokesman for BlackRock said in a statement that the company's goal "has always been to improve liquidity" for clients, and that it expects there will be a gradual shift toward more open trading in fixed-income markets….

Those clients also will now have to pay a transaction fee through MarketAxess to execute a trade. Previously BlackRock collected no fees on their trades, although the firm had plans to begin charging fees. Aladdin clients will also still be paying to use the firm's software system.

BlackRock Retreats from Bond-Trading Platform [WSJ]