Small investors who join online to expand stocks like GameStop Corp. I say it defies Wall Street. But one of the largest players in global markets will benefit from their frantic trading.
Citadel Securities, the electronic trading company owned by billionaire hedge fund Ken Griffin, has played a quiet but critical role in the frenzy of the past two weeks.
The company – a subsidiary of the Griffin hedge fund, Citadel – executes orders placed by clients of Robinhood Markets Inc., TD Ameritrade and other online brokerages that have enjoyed increased volumes during the coronavirus pandemic.
Citadel Securities makes money by selling shares or options for something more than they are willing to buy. The difference is often only a fraction of a penny per share. But, repeated millions of times a day, it adds up to serious money.
Last year, net trading income at Citadel Securities was $ 6.7 billion, almost double the previous high of 2018, said a person familiar with the matter.