These are numbers that will make your head spin. Citadel Securities, the largest trader on Wall Street, has made $23.3 million every day in 2022… or $16,000 a minute, our colleagues report. echoes this Thursday. In a difficult economic context, the group was able to hold its ground and strengthen its dominance on the transatlantic stock market. According to Bloomberg, the firm earned record revenue of $4.2 billion in the half year, up 23% from 2021.
Citadel Securities was able to take advantage of increased market volatility, leading to higher trading volumes. In the US, the company now handles 40% of the volumes from individuals. Like all quantitative trading firms, Citadel Securities’ business model is based on maximizing trading volume to capture small margins and price differences. During 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, which is managed independently of his trading firm. The success of both entities made Ken Griffin the richest financier on Wall Street, with a personal fortune estimated at over $29 billion.
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The financier, who owns more than 75% of the shares in his trading firm, has been able to transform the latter into a veritable cash-generating machine regardless of economic conditions. Its hedge fund, which specializes in multi-strategy (diversified investment in several markets), has produced double-digit returns (18% in the first half of the year). An impressive turnaround when we know that his foundation narrowly escaped bankruptcy in 2008, at the time of the Great Financial Crisis.
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