Citic Securities acquires stake in US brokerage BTIG

Citic Securities, the mainland's largest brokerage, has acquired a stake in US trading firm BTIG as it expands around the world.

The Chinese investment bank is making the purchase through its CLSA unit, the Hong Kong-based business it bought from Credit Agricole for more than US$1 billion to add traders mostly in Asia. New York-based BTIG, which has grown to more than 450 employees, will continue operating independently, it said on Sunday in a statement that did not disclose terms.

Since Steve Starker, a former Goldman Sachs Group partner, and ex-Bank of America equities chief Scott Kovalik founded BTIG a decade ago, the stock-trading firm has opened offices across the US and in Europe and Australia. BTIG plans to use the funds to add to its research and banking businesses, Starker said.

"Many have concluded that electronic trading is more profitable, and the reality is there is still a need for high touch service," said Starker. "Our model is all about relationship, trust, service and liquidity."

BTIG's main business is trading big blocks of stock for hedge funds and other institutional clients. The firm has been expanding as rivals shrink or close.

BTIG has gained market share in equities and is looking to repeat that in other asset classes.