Citigroup Inc. is overhauling its platform of trading strategies in an attempt to grow its share of U.S. equities from 14%, according to Young Kang, global head of algorithmic products at the firm.
The New York-based broker is introducing a new set of algorithmic strategies, as well as technology focused on speed and geared to an electronic marketplace with dozens of venues. Citigroup's almost 1,000 clients will make the switch to the new trading products by May 1, when the old system is retired.
The initiative, run by Mr. Kang, is designed to woo business away from rivals including Credit Suisse Group AG and Goldman Sachs Group Inc. The global platform, called Citi Algorithmic Trading Strategies, has been used by the firm's own traders for 11 months and is now available to clients in North America, Europe, Asia and the Middle East.
“Algorithmic trading is a complete arms race, and brokers must keep improving their offerings,” said Sang Lee, founder of research firm Aite Group LLC in Boston. “Citigroup has a lot of clients that are traditional asset managers driving a lot of volume” and may now be after more trading from a broader range of institutions across more geographic areas, he added.
Steve Swanson, head of global electronic trading at Citigroup, said he expects the new platform to help lift the broker's volume toward 20% of the market from its current 14%. He said 20% is Citigroup's goal across all of its equities businesses.