Goldman Sachs has spun off its technology arm REDI, turning the execution management platform into a broker-neutral provider.
The bank had owned a majority stake in REDI, which runs the REDIplus execution management system (EMS), but has sold it to a consortium of banks.
REDI's shareholders now include Bank of America Merrill Lynch, BNP Paribas, Citadel and Barclays. The deal has also been backed by private equity investor Lighyear Capital. Goldman Sachs will maintain a significant minority equity stake in the business.
The deal sees REDIplus become a broker-neutral EMS with broad cross-asset capabilities and global coverage. The firm said it also plans to leverage the strengths of its partners to deliver broker-neutral solutions across the trade lifecycle to bring added value to customers.
The new business will be headed up by Rishi Nangalia, who previously co-managed Goldman Sachs' electronic trading business development group.
Darren Cohen, global co-head of principal strategic investments at Goldman Sachs, said: "We are pleased to assemble an impressive consortium of market-leading participants to support the further growth of the REDI business and expand its reach to more clients, geographies and asset classes."
REDI will be headquartered in New York with offices in Boston, San Francisco, London and Hong Kong. It will continue to run its core product and technology suite.
The new investors plan to work to merge their own EMS technology into REDI's existing infrastructure in order to create a global platform across multiple asset classes.
Representatives from the new investor firms will join the REDI board.