Citadel Securities

From MarketsWiki
Jump to navigation Jump to search



Citadel Securities
Founded 2002
Key People Peng Zhao, CEO; Ken Griffin, Founder
Products Market making

Citadel Securities is a leading global market maker for a wide array of fixed income and equity products. It is the U.S.'s biggest equity and options market maker.[1] Its automated equities platform trades more than 20% of U.S. equities volume across more than 11,000 U.S.-listed securities, and it trades over 16,000 OTC securities. It executes approximately 35% of all U.S.-listed retail volume.

Citadel Securities is a separate entity from the hedge fund Citadel LLC, although both were founded by Ken Griffin.

History[edit]

In September 2015 Citadel Securities launched a European fixed-income market-making business, continuing its challenge to bank dominance of trading in government debt and derivatives. Citadel intended to use this as a first step to build a broader European trading business. It will initially offer to trade swaps denominated in US dollars to European customers during local trading hours.[2]

In January 2017, Citadel Securities agreed to pay $22.6 million to U.S. market regulators to settle charges that it misled customers over the prices they were getting for some of their deals. The SEC said that two of the algorithms Citadel Securities used to execute orders on behalf of retail investors had not tried to obtain the best price in the marketplace.

In December 2018 Citadel Securities agreed to pay penalties of $3.5 million to the SEC for submitting incomplete and inaccurate blue sheet data. The SEC uses such data to investigate potential insider trading and other fraud.[3]

In May 2019, Citadel Securities invested $5 million into The Small Exchange, a start-up retail focused futures exchange.[4]

It was reported in October 2020 that Citadel Securities planned to acquire IMC's market making unit on the New York Stock Exchange (NYSE) trading floor. The acquisition would expand Citadel's position as one of the largest floor brokers on the NYSE floor in terms of market cap and number of securities. [5]

In June of 2022, Ken Griffin said he planned to move the headquarters of both Citadel and Citadel Securities to Miami. He had already relocated some Citadel Securities staff to the Four Seasons Palm Beach in March 2020, during the Covid pandemic, and he had moved to Florida himself.[6]

In April 2024, Citadel Securities was one of four top financial firms BlackRock added to its list of "authorised participants" in its spot Bitcoin exchange-traded fund.[7]

Also in April 2024, Citadel Securities said it had moved the testing of the algorithms that power its trades into Google Cloud to cope with the huge amounts of data produced by financial markets.[8]

Products and Services[edit]

Citadel Securities acts as a specialist or market maker in more than 4,000 U.S. listed-options names, representing 99% of traded volume, and ranks as a top liquidity provider on the major U.S. options exchanges.[9]

Citadel Securities is the largest DMM on the floor of the New York Stock Exchange. It is also one of the world's largest ETF traders.

Valuation Metrics, a Citadel Securities Corporate Solutions offering, provides clients with focused targeting of institutional investors.[10]

Key People[edit]

References[edit]