Citadel Investment Group and a Goldman Sachs spinoff say they have the answer to order and execution management problems.
Citadel Technology and REDI Holdings, in which Citadel owns a stake, plan a new service that will combine portfolio management and trading desk systems, creating a seamless platform for trades from inception to clearinghouse. "We believe we have the winning formula," Citadel Techology managing director Stuart Breslow told Reuters.
The order and execution management space is getting increasingly crowded, with about a dozen vendors offering solutions. According to Breslow, the collective fee-pool for such services is about $1.65 billion per year.
Goldman continues to own a stake in REDI, as do Bank of America, BNP Paribas and private-equity firm Lightyear Capital.