US hedge fund Citadel Investment Group is taking a majority stake in Equiduct, the European multi-lateral trading facility operated by Borse Berlin.
Launched in April, Equiduct is one of several new trading platforms in Europe aiming to take advantage of the EU's Markets in Financial Instruments Directive (MiFID) and compete with incumbent exchanges.
Citadel Securities says it is making a "significant equity investment" in Equiduct, and is looking to turn it into a pan-European trading platform aimed at retail investors.
This would help distinguish it from other MTFs such as Chi-X and Turquoise which are targeted at institutional investors and high frequency traders.
Citadel says its funding will help Equiduct develop its platform into one of Europe's leading execution venues. Börse Berlin will continue to operate the platform.
The hedge fund also expects to partner other leading market participants and order flow providers on the platform's product offerings.
Citadel has invested in various US trading platforms, most notably the upstart Direct Edge ECN, which has quickly become one of the country's four top exchanges.
Patrik Edsparr, CEO, Citadel Europe, says: "In the United States, Citadel Securities has already demonstrated its ability to build market share rapidly by offering superior equity execution to its clients. Citadel Securities will replicate this success in Europe by working with Börse Berlin AG to make Equiduct a premier European trading platform."
Artur Fischer, CEO, Equiduct, adds: "This partnership will allow Equiduct to leverage Citadel Securities' market making and client service capabilities as we implement a more aggressive roll-out of our services."