Bloomberg News reports that the market marker, Citadel Securities, the founder of which is billionaire Ken Griffin earned a net trading revenue of $4.2 billion in the earlier part of 2022, amidst surging market volatility, as per people that are familiar with the matter.
There was a surge in the revenue by 23% in comparison to one year earlier, according to the people who are aware of the matter and requested anonymity.
As much as revenue of 10 consecutive quarters of net trading above $1 billion has been posted by the company, out of them, at least 8 recorded a figure beyond $1.5 billion. The figures are being posted for investors as a part of the incremental $400 million loan that is sought by the closely held firm for building trading capital and for miscellaneous reasons related to corporate affairs.
Citadel Securities representative with offices in Miami, New York, and Chicago refused to comment. Griffin, with a net worth of $29.3 billion, is the founder of the hedge fund Citadel, which he introduced in 1990. It has an investment capital of more than $50 billion. Later, he went on to set up Citadel Securities.
Citadel Securities earned as much as $2.6 billion in earnings before the interest taxes, amortization, and depreciation in the year’s first half, which is a 30% jump from the previous year. The total assets were $95.3 billion as of the second quarter, revealed people.
Bloomberg News reports that Moody’s Investors Service ranks the upsized term loan at Baa3 as sought by Citadel Securities. This, in turn, reflects the strong capital base, solid risk management culture and capacity, and differing market volatility, as revealed by Moody.
Across Wall Street, the trading operations benefited in the current year due to the wild swings in the debt market and equity. Volatility was triggered by a rate hike, fears of recession, escalating inflation, and Ukraine and Russia’s ongoing war.
