Citadel Securities steps up expansion in Asia
Citadel Securities is expanding its trading business in Asia, adding staff and office space as the region becomes an increasingly important source of revenue for the US market maker, Bloomberg reports, citing Chief Executive Officer Peng Zhao.
The firm plans to deepen partnerships with local and international banks to expand its trading activities across Asia-Pacific. In Hong Kong, Citadel Securities is increasing its office footprint by 40%, taking an additional half-floor at Two International Finance Centre, Peng Zhao said in the Interview.
Citadel Securities has hired nearly 100 people in Asia this year, bringing its regional headcount to about 400, according to Bloomberg. Almost half of the new hires are based in Hong Kong, with the remainder spread across Singapore, Sydney and Tokyo.
The expansion comes as competition among quantitative trading firms intensifies in Asia. Jane Street and other market makers have also been expanding their presence in Hong Kong.
Citadel Securities is seeking to broaden its client base in the region, targeting institutional investors including retail brokers, sovereign wealth funds and asset managers. The firm is also preparing to support longer US market trading hours expected later this year.
The company has made several senior hires to strengthen its Asian operations, including Prakash Subramanian K.V., former chief executive of Millennium India, as country head for India and Singapore, and Richard Smerin, who joined from Morgan Stanley as global head of structured products.
Citadel Securities launched its high-touch equity trading business this year, handling large US equity orders for institutional clients. Zhao said the number of active clients doubled between the first and second halves of the year.
The firm is considering a similar offering for large institutional trades in Asian markets such as Hong Kong, Japan, South Korea and Taiwan, but would likely use a different model. Zhao said Citadel Securities expects to rely more heavily on partnerships with local and global banks in the region.
The company’s expansion reflects its broader push to build a diversified trading business outside the US, with the scale of individual markets, their structure and client demand determining where it invests next.
