These are numbers that make your head spin. Citadel Securities, the biggest trader on Wall Street, has earned $23.3 million every day in 2022… or $16,000 per minute, our colleagues report. echoes this Thursday. In a difficult economic context, the group was able to hold its own and strengthen its domination on the transatlantic exchange market. According to Bloomberg, the firm earned record half-year revenue of $4.2 billion, up 23% from 2021.
Citadel Securities was able to take advantage of increased market volatility, which led to higher trading volumes. In the United States, the firm now handles 40% of volumes from individuals. Like all quantitative trading firms, Citadel Securities’ business model is based on maximizing trading volume to capture small margins and price differentials. Over the first 6 months of the year, its profit before tax (Ebitda) reached 2.6 billion dollars, or 5 times more than one of its main competitors Virtu, which generated a profit of 553 million dollars, according to The echoes.
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The New King of Wall Street
Citadel Securities is owned by Ken Griffin, who is also the founder of the hedge fund Citadel, managed independently of his trading firm. The success of both entities made Ken Griffin the wealthiest financier on Wall Street, with a personal fortune estimated at over $29 billion.
The financier, who holds more than 75% of the shares of his trading firm, has been able to transform the latter into a veritable machine for generating cash whatever the economic conditions. His hedge fund, which specializes in multi-strategy (diversified investment in several markets), delivers double-digit returns (18% in the first half). An impressive turnaround, when we know that his fund had narrowly escaped bankruptcy in 2008, at the time of the great financial crisis.
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