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arlier this year BlackRock,
the world’s largest asset
manager, made a clear
statement about its future trading
strategy by promoting its special-
ist in electronic trading, Supurna
VedBrat, as its new head of global
trading.
After starting in the role in the
second quarter of this year, she is
now responsible for overseeing
its global trading operations and
setting the strategic vision across
BlackRock’s platform.
With over 19 years of experience
in the US and Europe, she has
become an expert in electronic
trading, market structure and
technology. She joined BlackRock
in 2011 as its co-head of electron-
ic trading and market structure,
where she led its global equities
and prime financing business.
When VedBrat last featured in
the TRADE Derivatives in 2014,
the Dodd-Frank reforms on buy-
side trading and clearing of OTC
derivatives were just beginning to
take effect. A lot has changed since
then, with swap execution facilities
(SEFs) influencing wide-scale
adoption of electronic trading for
derivatives.
We caught up with VedBrat to see
what is the next stage for Black-
Rock’s trading strategies, how it is
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TheTrade
Summer 2017
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tackling liquidity challenges, and
the future role for the buy-side in
trading.
What are the main changes you are
looking to implement after taking
on the new role?
Supurna VedBrat: In many ways,
the new role will build on what
we have been doing over the last
several years. Our trading team
has been focused on a number of
things. First, as global markets
have been evolving, ensuring we
have access to sufficient liquidity
by adapting our reach; through
expanding the counterparties we
trade with, aggregating fragment-
ed liquidity in the marketplace,
internalising flow, or using algos,
ECNs or exchanges in order to
meet a greater number of liquidity
providers in a systematic manner.
Second, we have been enhancing
our use of data for both, pre-and
post-trade analytics. This is an area
that we will continue to focus on as
it helps us improve our trading and
investment strategies, especially
since the quality of available data
has been improving.
How does BlackRock organise its
global trading functions and how
does that relate to current struc-
tural or operational issues in the
market?
SV: Trading keeps evolving and our
organisational structure is agile
enough to adapt to these changes.
We have organised our team to en-
courage innovation, collaboration
and coordination, while also foster-
ing ownership and accountability.
Each asset class is run in partner-
ship by functional and regional
heads. In addition within trading,
we have a group that focuses on
trading research, market structure
and electronic trading. Diversity
of thought brings forth better solu-
tions and we encourage all levels
to keep enhancing our trading
capabilities. So when we have an
idea, anticipate a potential need
for change or any type of concern
in the market, these groups work
together as a team to provide the
best outcome. We have a thorough
and thoughtful evaluation process.
For instance, at times we may need
a defensive strategy and at other
times we may need to use a new
protocol to trade or seek liquidity
in new, emerging pools. Regardless