Citadel Securities Revenue Reaches $2.3 Billion in First Quarter

Citadel Securities reported a net trading revenue of $2.3 billion for the first quarter of 2024, marking a 68% increase year over year. This surge sets the firm, founded by billionaire Ken Griffin, on a trajectory for potentially record-breaking revenue as it expands into new asset classes and geographies. The impressive first quarter performance follows a robust $6.3 billion in net trading revenue in 2023, though this was a decrease from the record $7.5 billion achieved in 2022. The firm’s success highlights its strategic growth and the increasing demand for its services in the equity and fixed-income markets.

Citadel Securities has leveraged its advanced trading algorithms to profit from small price differences, serving a diverse client base that includes asset managers, banks, broker dealers, hedge funds, government agencies, and public pension programs. The firm’s recent focus on corporate bonds has further bolstered its market making capabilities. Citadel Securities reported a 54% margin for the first quarter, up significantly from 42% in the prior quarter and 40% a year earlier, showcasing its operational efficiency and expanding profit margins.

Under the leadership of CEO Peng Zhao, Citadel Securities is experiencing a period of rapid growth, driven by its expansion into new products and geographies. Zhao highlighted the firm’s strong performance at the Bloomberg Sell-Side Leaders Forum, noting that the company is running at “a record pace.” The firm’s earnings before interest, taxes, depreciation, and amortization for the first quarter reached approximately $1.26 billion, up from $551 million in the same period the previous year. For the full year 2023, Citadel Securities reported earnings of about $2.76 billion, with $725 million earned in the last quarter alone.

Citadel Securities gained prominence during the meme stock era and now facilitates about a third of all US retail stock trades. The firm is also enhancing its presence in fixed income beyond interest-rate swaps and Treasuries to include corporate debt trading, starting with investment-grade bonds. This strategic diversification aims to serve the growing needs of institutional investors and solidify Citadel Securities’ position as a leading market maker in both equity and fixed-income markets.