Citadel Securites, operator of the Apogee dark pool, is looking to shutter the non-public trading venue, according to sources.
As first reported by Reuters, which cited sources with direct knowledge of the matter, the trading firm is shutting the pool down but looking to redeploy assets and focus on another off-exchange or dark trading venue, Citadel Connect.
According to Financial Industry Regulatory Authority data, Citadel’s Apogee ranked 18th out of 37 U.S. dark pools. The equity market regulator reported in its latest data that approximately 39 million shares crossed in the venue.
This follows news late last this year that Citi decided to shut its LavaFlow dark pool, one of its three dark pools. It still operates its other pools. Lava shut following news last July that the Securities and Exchange Commission fined LavaFlow a record $5 million for permitting a smart order router, computer code that makes buy/sell decisions with high-speed data, to use confidential customer information in trading decisions.
SeeLava Cools As Citi Exits ECN Business
Wells Fargo also shut its dark pool back in October, citing low volume.
Also See:Wells Fargo Shuts Dark Pool on Volume Drought
Reuters reported that Citadel’s Connect averages “around five times the volume of Apogee,” citing according to a person with knowledge of the matter, but who asked to remain anonymous because the information is not public. Unlike Apogee, Connect is not classified as an “Alternative Trading System” and does not report volumes to FINRA.
The person said there is no timetable yet as to when Apogee would be closed, but that Citadel’s customers have been informed of the plans to shut it down.
A Citadel spokeswoman declined to comment from Reuters.
In Connect, Citadel makes active retail orders it has bought from retail brokerages available to institutional investors and other firms.
