Toad for DB2 currently ships, installs and runs in its own DB2 Client environment.
This was historically done because back in the early releases of Toad for DB2, we could not guarantee that customers who had DB2 clients environments also had the DB2 .Net Providers installed - as Toad requires the IBM DB2 .Net Providers.
Also, the early releases of the IBM DB2 .Net provider were updated frequently to improve performance and address issues and Toad would work with only the updated and more recent DB2 .Net Providers.
Having our own DB2 client (with IBM DB2 .Net Providers) caused some confusion at customer sites and caused more work for customers to keep several DB2 database catalogs in sync.
Going forward we are planning to change Toad DB2 to use your DB2 client environment and will not be shipping and using a Toad specific DB2 client.
This should simplify things and remove the necessity to sync DB2 catalogs across DB2 copy environments.
I have posted an idea on the Toad Db2 Idea pond. Please vote there or comment on this post so we can obtain your feedback on this topic.