Citadel Securities has announced it has applied to become a systematic internaliser (SI) in Europe.
The market maker said it wants to become an equities SI due to demand from investment firms for complementary sources of liquidity.
By becoming an SI, Citadel Securities said counterparties will be able to trade bilaterally with the company through the SI or multilaterally via an exchange.
The firm is already experienced with bilateral trading, operating its Citadel Connect platform, which is a single dealer equities platform in the US.
It will also consider expanding its SI offering to other asset classes in the future, such as fixed income or ETF, depending on demand.
“Our decision to become an SI is rooted in our desire to access and provide liquidity to a wide variety of flow types under Mifid II,” said Remco Lenterman, global head of business development for Citadel Securities.
“We view the SI regime as an important step towards ensuring a more transparent framework for bilateral trading, which will benefit all market participants and complement other sources of liquidity in the market.”