Bloomberg News

Equiduct Obtains New Funding as Trading Venue Assures Its Future

April 29, 2013

Equiduct Systems Ltd. obtained funding from new investors including BNP Paribas SA and Winterflood Securities, assuring the future of the trading venue after its shareholders considered closing the business.

BNP Paribas Securities Services, KBC Securities, Viel & Cie. (VIL) and Winterflood will join Knight Capital Group Inc. (KCG:US) and the Berlin bourse as shareholders, Artur Fischer, interim chief executive officer of the technology company said in an interview. Fischer declined to disclose the terms of the deal, saying the company now has enough funding to survive until it breaks even.

“Equiduct reached out to its members for support,” Fischer said. “With a mutualized ownership structure, which is also reflected in the new board composition, a tremendous commitment from existing stakeholders, the introduction of new partners and additional funding, we expect to be well positioned to invest in and grow out the Equiduct offering.”

Fischer said the platform is seeking a new chief executive.

Equiduct, a trading platform for retail brokers, was owned by Citadel Investment Group, Knight and the Berlin exchange. The business named Peter Randall chief executive in December 2009 when it sought to take market share from incumbent exchanges such as Deutsche Boerse AG, London Stock Exchange Group Plc and NYSE Euronext. Randall left in February this year and was replaced by Fischer, a board member of the alternative-trading system’s parent company.

Citadel, which is closing its direct-execution services business in Europe, had demanded clarity on Equiduct’s future, two people familiar with the matter said on Feb. 11.

To contact the reporter on this story: Nandini Sukumar in London at nsukumar@bloomberg.net or @NandiniSukumar on Twitter

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net


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