March 24 Citigroup Global Markets Japan Inc will offer dark pool trading services -- private venues used to match large trades -- to institutional investors in Japan, the Nikkei business daily said.
Dark pools allow traders, especially of large blocks of stock, to hide their intentions and avoid moving share prices.
They have gained traction over the last decade as the average size of trades dramatically decreased on the transparent exchanges.
The business daily said Citigroup Global Markets' dark pool will offer a faster, lower-cost alternative to traditional trading. The actual trades will be executed through the Tokyo Stock Exchange's TosTNeT system.
Citigroup Inc (C.N) (8710.T) expects high demand in Japan from both foreign and domestic institutional investors and aims to expand its share of stock trading in Tokyo, the newspaper reported.
Shares of the company were up 6 cents at $4.10 in late morning trade Tuesday on the New York Stock Exchange. (Reporting by Abhinav Sharma in Bangalore; Editing by Maju Samuel)