FlexTrade Systems, a provider of trading software, has purchased ColorPalette, the order management system (OMS) offered by LavaFlow, a technology subsidiary of global broker Citi.
As part of the acquisition, FlexTrade plans to make a substantial investment in ColorPalette and integrate its own products and services with the OMS so that existing users of its trading tools do not have to make any adjustments to their core platforms.
Greg Ludvik, a ten-year Citi veteran, has been charged with overseeing the new business and its development. FlexTrade plans to retain ColorPalette's existing development, product and support teams to ensure a seamless integration.
Users of the ColorPalette OMS will have access to the ColorBook smart order router, as well as market data and algorithmic products.
“I am excited about this transaction, which will allow FlexTrade to service our customers with industry leading OMS and execution management system capabilities,” said Dan Keegan, global co-head of electronic markets, Citi. “Citi will continue to focus on the execution capabilities offered by the LavaFlow electronic communications network, ColorBook smart order router, Citi Match dark pool, options and equities market making, and Citi's algorithmic product suite.”
Terms of the deal, which is expected to be completed in Q4 2010, were not disclosed.