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Citadel Expands into FX Market Making

Citadel Execution Services (CES), a division of Citadel Securities, has expanded its market making business into the spot FX market. The firm will partner with consultancy firm Shift Forex to try and help penetrate the FX market.

CES says that this market making service is designed to meet the growing demand from FX participants for unique liquidity. Therefore its FX offering includes pricing and service levels in line with Tier 1 bank providers, with the flexibility and customisation of leading non-bank providers.

Subsequently, CES claims that its FX capabilities allow brokerages to better identify, quantify, and manage FX risk on a per-trade basis.

“Just as we saw with exchange-traded assets, foreign exchange is becoming increasingly specialised,” says Jamil Nazarali, head of CES, who Profit & Loss understands is also heading up the FX initiative. “CES has built out a market leading platform in equities by developing powerful technology and trading algorithms. We seek to bring the same level and quality of liquidity to the FX market, helping enable brokerages to lower their execution costs and ultimately offer a better service to their clients.”

Shift Forex says that it will provide additional services to CES’ FX clients. Justin Gilmore, co-founder of Shift Forex, says, “The way FX liquidity is sourced and distributed is changing rapidly, and brokerages who embrace the transition will be the biggest beneficiaries. CES’ entry means the landscape will change that much more quickly.”

CES’ FX offering is fully operational and trades with buyers and sellers on most major FX venues and directly for a number of brokerage clients. Additional currency pairs and capabilities will follow in the coming months.

Citadel Securities is a well-established market maker in equities and options markets. It executes approximately one of every four retail trades in US listed equities and makes markets in over 26,000 listed and OTC securities worldwide.

Profit & Loss

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