XTX Markets, the algorithmic trading firm founded by former Deutsche Bank trader Alexander Gerko, reported a more than 50% increase in earnings for 2024 as the company capitalized on market volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term and expanded its global trading operations.

XTX Markets Posts Record £1.28 Billion Profit

The London-based market maker's three main UK operating entities generated a combined revenue of £2.74 billion last year, up from £2 billion in 2023, according to company documents. Net profit reached a record £1.28 billion, compared with £835 million the previous year.

XTX Technologies, the company's largest UK entity, led the growth with a revenue of £2.04 billion in 2024, up from £1.35 billion in 2023. XTX Markets Trading Limited contributed £636 million, while XTX Markets Limited added £61 million to the total.

At XTX Technologies, the company paid 113 staff an average of £435,814 last year, a 33% increase from 2023's average of £326,735. In March, the entity also paid a dividend of £404 million to its holding company, which is controlled by Gerko.

This represents a significant improvement in results, following XTX Markets' reported decline of nearly 24% in profit for 2023 and a 20% drop in revenue compared to the record year of 2022.

The Dominance of Algo Trading

The firm's performance highlights the growing dominance of algorithmic trading firms that have captured market share from traditional financial institutions. XTX's results come as rival Citadel Securities reported $9.7 billion in net trading revenue for 2024, a 55% increase from the previous year.

The company's success has made Gerko, who owns approximately 75% of XTX, one of Britain's wealthiest individuals with an estimated net worth exceeding $10 billion.

XTX has invested heavily in advanced computing infrastructure, including more than 25,000 graphics processing units (GPUs), primarily from Nvidia. Earlier this year, the company announced plans to invest €1 billion in a data center complex in Finland to support its expanding computational needs. The facility is expected to be operational by 2026 with an initial computing capacity of 22.5 megawatts.

“We're building ahead of our needs to establish a backbone for future growth,” said Joshua Leahy, Chief Technology Officer at XTX Markets. “Our need for compute has outgrown available leasing options.”

In the meantime, the company has hired Timothy James Osborne Throsby, the former CEO of Barclays, as Director.

Founded in 2015, XTX has rapidly established itself as one of the world's largest algorithmic trading firms, handling approximately $250 billion in daily trading volume across 35 countries. The company employs more than 250 people globally and has expanded beyond its initial focus on foreign exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term markets to trade equities, fixed income, commodities, and cryptocurrencies.