Source: Citadel Securities
Citadel Securities, one of the top liquidity providers and market makers in the world, today announced it will purchase KCG Holdings' designated market maker (DMM) business at the New York Stock Exchange.
This will establish Citadel Securities as the DMM with the largest footprint on the NYSE, responsible for trading in approximately 1,500 issues.
"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 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 all 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."
DMMs must meet certain obligations to maintain fair and orderly markets. DMMs are among the most active trading firms on the NYSE, consistently quoting at the National Best Bid and Offer (NBBO) and facilitating price discovery during opening and closing auctions and market imbalances. DMMs operate both manually and electronically to ensure investors have access to the best prices and deep liquidity, with limited volatility.
Citadel Securities will partner with KCG on the transition. The KCG DMM team is expected to join Citadel Securities and the deal is anticipated to close in the second quarter of 2016.
"Citadel Securities will be a strong DMM partner to our listed company clients," said Greg Tusar, Co-Head of KCG's Global Execution Services. "We look forward to working closely with NYSE and Citadel Securities to ensure a seamless transition."