Investment bank Citi is to offer its buy-side customers access to its full suite of proprietary electronic trading products for options.
Institutional clients will be able to access Citi’s electronic options trading platform, which includes the bank’s smart order router, through the same interface they use to trade equity-related products.
Citi also plans to add to the options special order types it offers, including a range of volatility-based options algorithms. It currently offers direct market access, sweep-post, sweep-out, and iceberg order types. Clients can access Citi’s electronic options capabilities via any third party order or execution management system.
The bank says it uses unique logic to determine how to best use listed exchange crossing mechanisms for enhanced price improvement opportunities, without using indications of interest.
“Citi is pleased to extend its market leading electronic options platform to the buy-side community,” said Kevin Murphy, head of US option electronic execution, in a statement. “Citi is a leader in the options market, currently executing over 10% of industry options volume. Our institutional clients can now reap the benefits of Citi’s liquidity and price improvement opportunities in options, as they have been with equities.”