Citadel Securities to Buy NYSE Market-Making Unit From IMC

Citadel Securities to Buy NYSE Market-Making Unit From IMC

(Bloomberg) — Citadel Securities plans to buy the market-making unit of smaller rival IMC Financial Markets, expanding its presence at the New York Stock Exchange.



a screen shot of a video game: NEW YORK, NEW YORK - MARCH 20: Traders work on the floor of the New York Stock Exchange (NYSE) on March 20, 2020 in New York City. Trading on the floor will temporarily become fully electronic starting on Monday to protect employees from spreading the coronavirus. The Dow fell over 500 points on Friday as investors continue to show concerns over COVID-19. (Photo by Spencer Platt/Getty Images)


© Photographer: Spencer Platt/Getty Images North America
NEW YORK, NEW YORK – MARCH 20: Traders work on the floor of the New York Stock Exchange (NYSE) on March 20, 2020 in New York City. Trading on the floor will temporarily become fully electronic starting on Monday to protect employees from spreading the coronavirus. The Dow fell over 500 points on Friday as investors continue to show concerns over COVID-19. (Photo by Spencer Platt/Getty Images)

The deal would shore up Citadel Securities’ position as the largest floor broker on the exchange, according to a statement. Terms weren’t disclosed.

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Citadel Securities, which oversees daily trading in more than 1,500 NYSE-listed securities, is among the designated market-makers responsible for ensuring that trading runs smoothly from the floor of the exchange.

Once run by Wall Street banks, the floor broker posts on the Big Board have been taken over by high-speed trading firms in recent years. Citadel Securities purchased its designated market-maker business in 2016.

Though the U.S. stock market is almost entirely electronic, NYSE touts its floor brokers as a key ingredient in keeping trading orderly and less volatile.

“We are thrilled to further extend our presence at the New York Stock Exchange,” Joe Mecane, head of execution services for Citadel Securities, said in the statement.

The Wall Street Journal reported the preliminary agreement earlier Thursday.

(Updates with background comments starting in fourth paragraph.)

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