00:00Kevin, what was behind the record haul for Citadel?
00:02So number one, volumes. Trading volumes have been astronomical. We've seen record days. And this is
00:10both the results that you're talking about and referencing the 12 billion. That was 2025. 2026
00:17has also been some banner, both individual days, weeks. That volatility has continued. So Citadel
00:25Securities, market making firms like them, Jane Street, Hudson River Trading, they are benefiting
00:31from that volatility, as are the big bank trading desks. So we're going to hear from Jeffries later
00:38today. And then next month, we're going to hear from the big U.S. banks. But all things are pointing
00:44towards these records just being topped. 2025, that 12 billion was topping Citadel's record from the
00:53previous year, 9.7 billion. So it just is continuing to be a trend that right now I see no
01:01signs of
01:01stopping. You know, our I keep referencing Shinali today, but our former colleague Shinali Basak now
01:06at ICAP was tweeting about this earlier. And she said this started, you know, after the great
01:12financial crisis, we wanted banks to take on less risk. And so that transfer started happening then
01:18and has been going on for almost two decades and is not going to turn around. So this, I mean,
01:22we're likely to see another new record from Citadel Securities next year as well.
01:27Right now, if the momentum, the volumes and also the new businesses that they're getting into,
01:32they just started in high touch equities trading. They're handling now big block orders from buy side
01:39clients. That's directly competing with the banks like J.P. Morgan, Goldman Sachs. That might not be as
01:45lucrative for them as some of their businesses that they have cemented themselves in, for example,
01:51retail trading. They're handling 35 percent of the retail equity market. That compared to where we
01:58were 10 years ago is showing not just their growth, but how fast they were able to grow in that
02:05short
02:05period of time. But I will also mention that for Citadel Securities and their competitors, that risk that
02:14you're talking about, it's not necessary that we talk about this as them taking all of the activity
02:22from, let's say, the banks, as you're putting it. It's that the pie overall has gotten bigger.
02:28So the banks have also benefited from this. And you have new entrants. At this point, Citadel Securities
02:34is not new to the market, but in the last decade they are. So you have that pie growing bigger.
02:40You have
02:40these non-bank liquidity providers like Citadel Securities, like a Jane Street, and they're able to come in
02:47and use their technology, use their algos and their people to basically jump into that bigger pie as a whole.
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