Citi is to switch from its inhouse LavaX execution management system (EMS) to a third party platform supplied by TradingScreen.
The bank says TradingScreen's TradeSmart EMS will be introduced to Citi's existing institutional clients who currently use the LavaX system. TradingScreen will also become the preferred front-end EMS technology provider for Citi's institutional buy-side clients who access Lava order routing technology.
The switch reflects the intense competition among rival EMS vendors as buy-side clients look to consolidate systems and rationalise their use of trading technology during the downturn. A recent Tabb Group survey of 178 buy side firms found that nearly half were considering changing their trading system, swapping out an OMS or an EMS despite the complexities involved in doing so.
At Citi, the multi-asset TradeSmart front end will be implemented on an ASP basis and integrated with the bank's Lava ColorBook ColorData and LavaFlow ECN.
Shane Swanson, head of transaction services, Lava, says: "Combining TradingScreen's EMS technology with Citi's existing Lava Technology is a win win. TradingScreen's unique ASP deployment model will provide Citi's institutional clients around the world with new services and functionalities, including rapid access to one of the deepest and most diverse pools of liquidity."
He says the LavaX support team will work with TradingScreen to ensure a smooth transition for clients to the new platform.