Inside the Secretive Firm That Makes Markets

Citadel Securities, which handles about 40% of U.S. retail trades, just had a banner year. Not everyone is applauding

- Katherine Doherty

Citadel Securities LP was thrust into the spotlight in 2021, with day traders, lawmakers, and regulators all scrutinizing the firm at the center of one of the U.S. stock market’s wildest periods. They’re about to learn that amid the uproar, the financial giant had its best year ever.

Billionaire Ken Griffin’s stock-trading powerhouse posted record revenue of $7 billion as frenzied bouts of volatility helped drive up earnings. The figure, disclosed by people familiar with the matter who declined to be named discussing private information, topped the firm’s previous record of $6.7 billion in 2020, when the pandemic upended global markets. Inside Citadel Securities, the haul is reason to celebrate. But it also highlights an emerging problem that senior executives seem acutely aware of: The bigger it gets, the bigger the target on its back.

With ambitions to grow even more, the company is starting to crack open its previously sealed doors to respond to its critics. In interviews, managers addressed concerns that the firm is too dominant, discussed rumors of an initial public offering, and hinted at plans to expand into businesses that Wall Street banks have long controlled. “You get to a point where staying under the radar is no longer an option,” says Chief Executive Officer Peng Zhao. “We want to be able to tell our own story, rather than having the story told about us.”