After some regulatory fines and increasing scrutiny, Citi has decided to close LavaFlow. LavaFlow is a popular alternative trading system - hitting as high as sixth in terms of trading volume.
Citigroup Inc (C.N) is shutting down its alternative stock trading venue LavaFlow, the bank said on Tuesday, at a time when regulatory scrutiny has increased around broker-run trading platforms, forcing banks to rethink the costs. Critics say the alternative stock trading venues add to the fragmentation of the market, increasing complexity and costs for market participants. "Following a recent review of the LavaFlow ECN, we have decided that our capital, resources and efforts would be better redeployed to other areas within Citi’s Equities Division," Citi said in a statement. The decision was first reported by Reuters.