Deutsche Bank, BlackRock Merge FX Tech in Bid to Automate Flows

Deutsche Bank AG and BlackRock Inc. are teaming up to help make foreign exchange easier for investors, as asset managers look to cut costs and streamline their operations.

The German lender will incorporate its HausFX software with BlackRock’s Aladdin portfolio-management system, according to a statement. The combination is expected to be finalized by the second quarter.

By connecting their platforms, the firms aim to smooth the currency transactions associated with investors’ cross-border equity and bond trades. The new structure will allow some FX operations to be automated, potentially minimizing the drag exchange-rate fluctuations can have on performance.

“We are ...