Citadel Securities Eyes Expansion in Treasuries, Swaps Trading

(Bloomberg) -- Citadel Securities LLC, Ken Griffin’s market-making company, sees opportunities for expansion in treasuries in Europe and swaps trading.

The firm is significantly growing its treasuries operation in the region and in Asia after hiring Anthony Cronin last month, said Paul Hamill, global head of fixed income, currencies and commodities at Chicago-based Citadel Securities on Bloomberg Television.

“Our model brings fair, transparent liquidity in all market conditions and our model stands out in volatile conditions,” he said in an interview with Francine Lacqua. “There are opportunities because our model is different. We have firm prices on all swaps and treasuries. In calm markets it’s harder to see, in volatile markets it’s very valuable to investors.”

Hamill said Citadel is outpacing rivals in treasuries and swaps, growing 40 percent compared with the 30 percent volume growth for the industry.

Europe’s phased requirements for firms to centrally clear swap trades mean that many more firms will face mandatory clearing this year, providing a boost to Citadel.

“The opportunity is massive in Europe as we go into year end,” said Hamill. Central clearing “opens up a huge pipeline of potential clients to take our swap product out to,” he said.

To contact the reporter on this story: Viren Vaghela in London at vvaghela1@bloomberg.net.

To contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, Jon Menon, Keith Campbell

©2018 Bloomberg L.P.