Citi’s Global Transaction Services and Global Markets businesses have launched an integrated electronic execution and custody system for equities markets. These services are aimed at broker-dealers and asset managements, Citi said.

The new system combines electronic execution and smart order routing to reach pockets of liquidity and achieve best execution. It also uses GTS's custody capabilities to try and reduce settlement costs, automate the settlement process, and provide asset servicing after trades are carried out.

The system will use the bank’s Lava Technology market access platform and trade life-cycle order to trade to settlement automation platform with Citi's proprietary custody branch network.

"A dramatic shift has occurred in the European equities market. The number of trading venues has increased, causing significant fragmentation of liquidity in the marketplace. New regulations have made it more difficult and costly for broker-dealers and asset managers to remain competitive while complying with them," Curtis Brill, managing director, global head of electronic markets for securities and fund services at Citi.

"This solution is meant for broker-dealers and asset managers seeking to overcome the challenges of market fragmentation in a cost-effective manner. By using Citi's integrated pre- and post-trade platform and extensive network to provide a single counterparty in all major execution markets worldwide - clients can achieve operational efficiencies and reduce the risks of dealing with multiple providers," he added.