Knights Capital Group has agreed to invest in Equiduct Systems, the pan-European equities trading platform.
Kee-Meng Tan, managing director and head of the electronic trading group in Europe, will join the Equiduct board.
The firms have not yet disclosed the terms of the investment, which are subject to approval by Equiduct’s shareholders.
“Knight is partnering with Equiduct and Citadel Securities to help level the playing field for retail investors in Europe,” Tan said. “Retail investors have very few resources available to address challenges in the marketplace – fragmentation in European markets, the absence of a consolidated tape and limited price discovery. The Equiduct model, powered by cutting-edge technology, gives broker-dealers the ability to provide high-quality execution to their end clients at the best price.”
Citadel Securities is the majority owner of Equiduct. Both Knight and Citadel Securities are market makers in PartnerEx, created by Equiduct to aggregate pricing data and give brokers the ability to satisfy pricing obligations for retail clients in equities trading. Citadel is an active participant in this agreement.
“We are very pleased that Knight has joined our strategic partnership with Borse Berlin AG,” said Matteo Cassina, president of Citadel European Execution Services. “Knight and Citadel have a history of successful collaboration in emerging trading platforms. We look forward to working together in the European market and expanding Equiduct’s capabilities.”
The deal is expected to close by the end of the month.