Detailed Client Case: BlackRock Aladdin Implementation
Client Background – Global Asset Manager
Client Challenges:
In its strategic evolution, the firm transitioned from the Charles River Development (CRD) system to the Aladdin platform by BlackRock, seeking enhanced functionality and efficiency in investment management operations. Significant challenges with the CRD system, including functional limitations and operational inefficiencies leading to compliance breaches, posed risks to regulatory standing and hindered effective investment management.
Our Approach:
To address these challenges, comprehensive rule testing ensured accuracy and reliability in the outputs of the new Aladdin system, mitigating compliance risks. Parallel testing compared data and processes between legacy CRD and new Aladdin systems, ensuring alignment in investment strategies and compliance protocols. Extensive re-coding of BlackRock Query Language (BQL) using macros enhanced flexibility in compliance monitoring, accommodating regulatory changes. A close collaboration with BlackRock facilitated the adaptation of Aladdin macros to meet evolving requirements, providing agility in rule modifications. Active engagement with stakeholders addressed queries and provided expert guidance on compliance rules and system functionalities. Rigorous pre-trade and post-trade functional testing, supported by comprehensive documentation, ensured a smooth transition with minimal operational disruption.
Client Benefits:
The successful integration of the Aladdin platform delivered tangible benefits to the client, including improved functionality and operational efficiency. The robustness of the new system enhanced compliance capabilities, reducing the risk of regulatory breaches and safeguarding the firm’s reputation. By aligning with best practices and industry standards, the client achieved greater confidence in its investment management processes and operating model. The transition not only addressed immediate challenges but also positioned them for future growth and success in an increasingly competitive market landscape.