Citadel Securities Trading Revenue Hits Record $4.2 Billion

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Volatility spurred by interest rate hikes, soaring inflation, recession fears and Russia’s invasion of Ukraine benefited trading operations on Wall Street. The largest U.S. banks generated $29 billion in trading revenue during the second quarter, a 21% increase from a year earlier. Leading the pack was JPMorgan Chase & Co., which reported a $7.8 billion gain from the company.

Citadel’s numbers are being released to investors as part of an additional $400 million loan the private company is seeking, which will be used to build business capital and for general corporate purposes.

A representative for Citadel Securities, which has offices in New York, Chicago and Miami, declined to comment.

Griffin, who has a net worth of $29.3 billion, founded the Citadel hedge fund in 1990, which now has more than $50 billion in investment capital. He then founded Citadel Securities, the trading company that serves asset managers, banks, brokers, hedge funds, government agencies and public pension programs.

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The first half’s trading path reflects Citadel Securities’ status as a trading giant, taking shares of the biggest banks and dominating market-making activity for stocks and options, particularly for retail investors. The company said it handles about 40% of all US retail trading volume and one in four US equity trades.

Citadel Securities reported $2.6 billion in earnings before interest, taxes, depreciation and amortization for the first half of the year, a 30% jump from a year earlier. Total assets were $95.3 billion in the second quarter, the people said.

The company reported $1.9 billion in net trading revenue during the second quarter of this year, up from about $1.3 billion from the same period a year earlier, the sources said. The company’s earnings before interest, taxes, depreciation and amortization were about $1.1 billion, compared to $712 million in the second quarter of 2021.

Rival market maker Virtu Financial, which reports financial results as a public company, also saw its profits rise, with revenue up 10% to $604.7 million in the second quarter from $549 million. one year earlier.

Moody’s Investors Service rates the term loan sought by Citadel Securities at Baa3. This reflects “the company’s strong capital base, track record of profitability during periods of varying market volatility, and strong risk management capabilities and culture,” the ratings firm wrote in a recent report.

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