Citadel and Redi Launch Integrated Trading System

Terry Flanagan

Citadel Technology and Redi Global Technologies have launched a strategic partnership that will combine order management (OMS) and position management (PMS) functionality from Citadel Technology with execution management (EMS) capabilities provided by Redi, recently spun off from Goldman Sachs.

The partnership was conceived to meet the growing industry demand for an integrated order and execution management system (OEMS).

In an era of downsizing on Wall Street, more trading and investing firms are opting to manage costs and consolidate workflows by trading in their Order Management System and Execution Management System for an OEMS.

“Citadel had the idea of commercializing the OMS technology that they built for their own traders,” said Rishi Nangalia, CEO at Redi. “When we saw the Citadel platform in action, we did a proof of concept for an integrated OMS/EMS. The key is that the Citadel OMS is embedded within the Redi workspace, so the trader has access to both via the same GUI.”

Citadel Technology offers a robust and flexible OMS, which allows for seamless connection to Redi’s EMS.

“Redi and Citadel Technology originated out of two of the most proven technology-driven financial firms,” said Tom Miglis, chief information officer at Citadel and Redi board member. “This partnership represents the future in asset management, and we are delighted to offer clients the next generation in portfolio management, order management, execution management, and risk management.”

The asset-class coverage across listed and OTC instruments that will be provided by the forthcoming Citadel Technology/Redi system will enable both firms to offer clients an institutional-level technology infrastructure with multi-currency, multi-broker, multi-prime OEMS and PMS capabilities.

The product offering will include seamless, intuitive workflow across portfolio managers, traders, and middle-office staff; multi-broker execution and multi-prime broker clearing; real-time position P&L and risk management across listed and OTC asset classes; and integrated pre-, real-time, and post-trade compliance checks.

Citadel Technology, which was established in 2009 as a wholly-owned, independently-operated affiliate of Citadel LLC, provides delivers multi-asset, multi-currency order, portfolio, and risk management technologies to help alternative and traditional asset management clients create and capture business opportunities in changing market conditions.

In July 2013, Goldman Sachs sold a majority equity interest in Redi, the technology provider for the REDIPlus Execution Management System (EMS), to a consortium of investors including BofA Merrill Lynch, Barclays, BNP Paribas, Citadel and Lightyear Capital. Goldman Sachs retains a significant minority equity stake in the company.

The consortium of investors enhances Redi’s business by providing a broad range of benefits to the marketplace through an expanded broker network, broad cross-asset capabilities, expansive global coverage and industry-leading customer service. In addition, Redi will leverage the valuable strengths of its partners to deliver innovative broker-neutral solutions that span across the trade lifecycle, enrich the client experience and bring added value to customers.

“Our clients drive everything we do, and this partnership between REDI and Citadel Technology is a unique opportunity to provide our clients with a seamless workflow across the trade lifecycle,” said Nangalia. “We’re excited to partner with Citadel Technology and will continue to pursue and deliver open, collaborative technology solutions that both meet our clients’ needs and move the industry forward.”

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