This morning, Citadel Securities, one of the top liquidity providers and market makers in the world, announced it will purchase KCG Holdings’ designated market maker (DMM) business. This will establish Citadel Securities as the DMM with the largest footprint on the NYSE, responsible for trading in approximately 1,500 issuers.
“This acquisition is part of our aggressive expansion plan and our commitment to institutional and retail investors who rely on us for deep liquidity and exceptional trade execution,” said Jamil Nazarali, Head of Citadel Execution Services. “We are constantly seeking innovative ways to improve the market for investors, and we are pleased to bring our experience and technology to the NYSE platform for the benefit of NYSE-listed companies.”
Citadel Securities is one of the leading market makers in US equities and equity options. Established in 2002, Citadel Securities has a long track record of transforming markets through solutions that reduce trading costs, increase transparency, and improve execution quality for retail investors.
“Citadel Securities is a leader among the next generation of DMMs and a great addition to the NYSE’s proven and unique listing and trading experience,” said NYSE Group President Tom Farley. “Citadel Securities brings tremendous energy, expertise, and technology that will benefit both investors and NYSE-listed companies.”
The role of a DMM is to oversee a portfolio of issues and maintain fair and orderly markets among those issues. DMMs play an important role in facilitating price discovery, minimizing volatility and ensuring liquidity.
The transaction is expected to close in the second quarter of this year and further enhances Citadel Securities’ position as a leading global liquidity provider.
Securities and FX activities in the U.S. are conducted by Citadel Securities LLC, member FINRA & SIPC