NEW YORK (TheStreet) -- Citigroup (C) 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, Reuters reports.
"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," Citigroup said, according to Reuters.
LavaFlow, an alternative trading system (ATS) that electronically matches buy and sell orders for listed stocks, is one of about 40 such venues competing for much of the same business as the 11 registered U.S. stock exchanges such as Nasdaq OMX Group (NDAQ) and the New York Stock Exchange, Reuters said.
Shares of Citigroup are up 1.93% to $54.38.
Separately, TheStreet Ratings team rates CITIGROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CITIGROUP INC (C) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."