Citadel is now the number 1 designated market maker on the U.S. oldest stock exchange.
How?
Citadel Securities, a liquidity providers and market maker, 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.
Citadel now will reach more traders via its increased presence via the KCG purchase on the NYSE floor
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.
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 is a leader among the next generation of DMMs and a great addition to the NYSEs 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.
