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Who We Are
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Dear Clients,
My previous note highlighted how Citadel Securities is reimagining finance by creating an Amazon-like client experience. From simple point-and-click trades to complex bespoke transactions, we deliver unmatched liquidity, competitive pricing, and seamless execution. But best-in-class execution is only part of our story – we pair this strength with differentiated insights drawn from our unique vantage point across markets and technology.
Recently, many of you have asked to compare notes on harnessing the power of rapidly evolving technology. Generative AI FOMO is real: if you’re not applying AI to every workflow, it feels like you’re already behind. Our advice is to focus on practical applications with rigorous measurement tools. Over the past 30 years, technology’s impact on financial services firms has been uneven – and AI will be no different.
AI is spreading fast across the workforce, and when applied thoughtfully, it has real potential to enhance decision-making, accelerate workflows, and unlock value. But without careful process redesign, workflow by workflow, results can fall short. An MIT Media Lab study found that 95% of organizations report no measurable return on generative AI. Much enthusiasm, little payoff – unless it’s done right.
From what we’ve seen, AI adoption has been mostly ad hoc – individuals experimenting with smarter search, faster drafting, and modest coding gains. But indiscriminate use can backfire. As Harvard Business Review notes, firms are now battling the scourge of AI “workslop” – output that looks polished but lacks substance, slows workflows, and undermines collaboration.
Our experience is clear: technology creates real value only when grounded in a business discipline, versed in engineering, applied at scale, and guided by thoughtful human judgment. Building a culture that embraces these principles is as important as the tools themselves. With just 1,800 professionals, Citadel Securities sends out 45 billion option quotes daily and executes nearly a quarter of U.S. equity volumes – proof of what disciplined technology can achieve.
We are now deploying AI selectively, in areas where it measurably reduces friction and amplifies human judgment. For example, we’ve centralized code migrations, allowing a single engineer to drive broad-based changes, with results reviewed by area experts. This eliminates the inertia of broad coordination and accelerates upgrades. Our approach is guided by four principles shaped by 23 years of experience with automation:
- Protect intellectual property and data from the start
- Design around actual workflows, not imagined solutions
- Build common infrastructure for scale and resilience
- Put world-class engineers at the core of innovation
Technology has always been our multiplier. AI represents a powerful new frontier: applied thoughtfully, it can enhance human judgment, accelerate innovation, and unlock value. As markets evolve, we’ll continue investing in the systems, analytics, and talent that define market making at scale. We look forward to sharing our learnings, understanding your priorities, and supporting your efforts to apply new technologies effectively. Together, we can shape the next generation of markets.
Jim Esposito, President
Citadel Securities
Extra Credit Work
📰 Harvard Business Review AI-Generated “Workslop” Is Destroying Productivity 📚 MIT Media Lab The GenAI Divide: State of AI in Business in 2025 🖥️ Axel Springer Mathias Döpfner in Conversation With Sam Altman
A Word from Our Sales and Trading Team
Meeting your needs in the new issue ecosystem…
Since launching our voice IG Credit business in March 2024, our team has had countless discussions with you about how we can improve your overall trading experience, including depth of liquidity and robust pricing. A consistent theme emerged: the current new issue ecosystem leaves critical gaps, particularly in unique thought leadership and consistent liquidity provision.
Earlier this month we launched the Citadel Securities Grey Trading Panel on Bloomberg. This first-of-its-kind platform centralizes access to our live grey market pricing in real time, streamed directly from our internal risk systems. By integrating seamlessly into your existing workflow on Bloomberg Launchpad {CTSD #GREY}, the Panel provides transparency with key deal data – IPT, guidance, launch, and tranche size – alongside our pricing. – Sam Berberian, Global Head of Credit Trading
Fall Reads, Watches, and Listens
Ken Griffin & Anil Kashyap: Trump’s Risky Game With the Fed
In an op-ed earlier this month, our founder Ken Griffin and Anil Kashyap, professor at The University of Chicago Booth School of Business and a consultant to the research department at the Federal Reserve Bank of Chicago, advocate for an independent Federal Reserve, bringing inflation down and putting our fiscal house in order.
Ken and Anil point out that “if the Fed visibly bows to political pressure and permits inflation to rise unchecked, tens of millions of retired Americans will see their savings diminished.” They add that the current framework of Congressional oversight of the Fed works—and any interference by the White House is counterproductive.
Read the full op-ed here.
Chart Topping
Retail Options – Call / Put Direction Ratio by Week (%)
Citadel Securities’ Retail Options clients are on a bullish streak watch. Last week was the 2nd most bullish week of 2025. This 22 week streak is now the longest on record since 2020.
Source: Citadel Securities, as of September 29th, 2025. Figures are for illustrative purposes only. Past performance figures do not guarantee future results.
A Look Across the Firm
Retail Market Update | Crowd Surfing: Catching the Retail Liquidity Wave
Tom Sozzi, Head of Institutional Equity Electronic SalesAs the end of daylight savings time approaches, we’re reminded it’s not just our clocks that are shifting—market rhythms are evolving too. While broader volumes have steadily concentrated in the late-day swell, retail investors began moving earlier some time ago, and this shift has only accelerated recently. These changing tides highlight an important point: as the timing of retail investor participation continues to evolve, it may be time to recalibrate how we think about the flow of volume throughout the trading day.
Read Tom’s take here.
Some Macro Thoughts…Green Light
Nohshad Shah, Head of Fixed Income Sales – EMEAThe Fed’s insurance cuts began this week with a 25bp cut and confirmation of a dovish bias to policy, likely for the remainder of the year. The Summary of Economic Projections (SEP) revealed a three-cut median for policy rates in 2025 (from two in June), meaning we should expect further 25bp adjustments in the October and December meetings as the base case. Both the statement and Chair Powell’s presser confirmed that “downside risks to employment have risen” and whilst he did pay heed to “two-sided risk” and that there is “no risk-free path” given the challenges to both sides of the mandate…
Read Nohshad’s take here.
Global Market Intelligence | “What’s the RUB?”
Scott Rubner, Head of Equity and Equity Derivative StrategyEquities sit at a pivotal inflection point, with competing forces in play. The macro hinge remains the inflation – Fed easing trajectory: stabilization enables policy support, while persistence forces repricing. Execution on AI and Q3 earnings is equally critical – mega-cap leaders must deliver against high expectations to sustain stretched multiples. Geopolitical and trade frictions, plus shutdown risk, linger as exogenous shocks. Market breadth remains the key tell: broadening supports durability, while Mag7 concentration signals fragility.
Read Scott’s take here.
Legal Entities Disseminating this Material: This material is disseminated in the United Kingdom by Citadel Securities (Europe) Limited (“CDGE”) authorised and regulated by the Financial Conduct Authority (“FCA”) (Registered company number: 05462867); in the European Union by Citadel Securities GCS (Ireland) Limited (“CSGI”) and its Paris Branch authorised and regulated by the Central Bank of Ireland (“CBI”) (Registration Number: C173437); in Hong Kong by Citadel Securities (Hong Kong) Limited (“CDHK”) licensed by the Securities and Futures Commission of Hong Kong (“SFC”), in Japan by Citadel Securities Japan Co., Ltd (“CSJC”) registered as a Type 1 financial instruments business operator with the Japan Financial Services Agency (“JFSA”); and in the United States of America by Citadel Securities LLC (“CDRG”) registered with the Securities Exchange Commission (“SEC”), Financial Industry Regulatory Authority (“FINRA”), and Securities Investor Protection Corporation (“SIPC”), Citadel Securities Institutional LLC (“CSIN”) registered with the SEC, FINRA, and SIPC, or Citadel Securities Swap Dealer LLC (“CSSD”) registered with the SEC, Commodities Futures Trading Commission (“CFTC”), and National Futures Association (“NFA”). Unless governing law permits otherwise, you must contact a Citadel Securities entity in your home jurisdiction if you want to use our services in effecting a transaction in any financial instruments or securities, including derivatives.
FOR INSTITUTIONAL USE ONLY; FOR PROFESSIONAL CLIENTS AND ELIGIBLE COUNTERPARTIES ONLY. This material is not intended as and does not constitute investment research. Contents of this material will be strictly limited to non-specific, generic information (i.e. macro events/topics) and are not subject to the Markets in Financial Instruments directive (MiFID II) or FINRA research rules. This material does not constitute an offer, solicitation, invitation, or inducement to purchase, acquire, subscribe to, provide, or sell any financial instrument or otherwise engage in investment activity. Please see additional important disclosures, including disclosures that may be relevant to your country of residence or business at www.citadelsecurities.com/GlobalSalesTrading.
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