We need to find ways to bring down that trading friction cost, we need to make sure we’re not being taken advantage of.  Hopefully our counterparties, our dealers, will make less money from us and our clients are going to make more return…There’s no question, you have seen huge profitability in some of these institutions. The widest bid-ask spreads are in fixed income — the more opaque the market, the more money the market makers are making.

Larry Fink on crossing trades internally and cutting brokers out of the loop

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