Citi is selling its LavaFlow ColorPalette order management system (OMS) to trading technology vendor FlexTrade. Financial terms were not disclosed.
Citi acquired the ColorPalette US equity hosted OMS product when it bought Lava Trading in 2004 but has now agreed to offload it in a transaction expected to close in the fourth quarter.
FlexTrade has vowed to make a "substantial investment" in the platform and infrastructure, and integrate its products and services without requiring customers to change their core platform.
Greg Ludvik, a 10-year Citigroup veteran, will join FlexTrade to run the ColorPalette OMS and business development with the existing development, product and support team also staying on.
The system's customers will continue to have access to the ColorBook smart order router, which provides market access products. Citi will also provide access to ColorData market data and algorithmic trading products.
Dan Keegan, global co-head, electronic markets, Citi, says: "Citi will continue to focus on the exceptional execution capabilities offered by the LavaFlow ECN, ColorBook smart order router, premier Citi Match dark pool, options and equities market making, and Citi's algorithmic product suite."
Citi - which has been selling off non-core businesses since the global financial crisis hit - has already sold the LavaFX platform this year to exchange trading portal FXall.