(20 January 2006 – USA) Citigroup is set to take on the New York Stock Exchange and Nasdaq with its own electronic communications network.This follows Citigroup’s purchase of e-trading network OnTrade from NexTrade Holdings for a reported US$8 million.
The bank will keep the e-trading business operating as normal with the aim of improving the platform over the next three to six months and snaring trading volume from rival platforms.
Citigroup head of US Equities Jim O’Donnell said the bank’s goal was to create an electronic network that provided execution flexibility for the bank, other brokers and dealers, and clients.
Citigroup said the network would reduce transaction costs to the industry.
In 2005, Citigroup, along with Morgan Stanley, UBS and CSFB, invested in an electronic equities trading platform run by the Boston Stock Exchange.