Citadel Securities Acquires IMC’s Designated Market Making Unit
- The companies did not disclose the monetary size of the deal.
Citadel Securities announced on Thursday that it has reached a preliminary agreement to acquire IMC's Designated Market Making (DMM) business on the New York Stock Exchange (NYSE) floor, thus significantly increasing its market share in the area.
According to Citadel Securities, it will become NYSE’s largest DMM both in terms of market capitalization and the number of securities after the completion of the deal.
“We are thrilled to further extend our presence at the New York Stock Exchange,” Citadel Securities’ head of Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term service, Joe Mecane said. “We look forward to building new relationships and bringing the benefits of our leading Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term offering and exceptional client service to the additional issuers who will be joining us as a result of this transaction.”
The companies are now negotiating on the definitive agreement and other customary closing conditions and aiming to close the transaction by the end of Q4 2020.
Exit from the DMM Business
IMC gained the status of a DMM in 2014 after the acquisition of Goldman Sachs' DMM business and since then significantly expanded its market-making business.
The company particularly focuses on exchange-traded funds (ETFs) and options with its services and is the lead market maker for 150 ETFs and 500 options classes.
These services will align with Citadel Securities’ existing offerings of several products across fixed income, equities, derivatives, ETFs, and FX in more than 35 countries.
“The DMM business provided IMC with many benefits since we acquired it six years ago,” Sunny Khiani, managing director for IMC's US operations, said. “The decision to sell our DMM business at this time is in line with IMC's growth strategy, which focuses on our core strengths – market-making, advanced technology, and deep liquidity.”
Citadel Securities announced on Thursday that it has reached a preliminary agreement to acquire IMC's Designated Market Making (DMM) business on the New York Stock Exchange (NYSE) floor, thus significantly increasing its market share in the area.
According to Citadel Securities, it will become NYSE’s largest DMM both in terms of market capitalization and the number of securities after the completion of the deal.
“We are thrilled to further extend our presence at the New York Stock Exchange,” Citadel Securities’ head of Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term service, Joe Mecane said. “We look forward to building new relationships and bringing the benefits of our leading Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term offering and exceptional client service to the additional issuers who will be joining us as a result of this transaction.”
The companies are now negotiating on the definitive agreement and other customary closing conditions and aiming to close the transaction by the end of Q4 2020.
Exit from the DMM Business
IMC gained the status of a DMM in 2014 after the acquisition of Goldman Sachs' DMM business and since then significantly expanded its market-making business.
The company particularly focuses on exchange-traded funds (ETFs) and options with its services and is the lead market maker for 150 ETFs and 500 options classes.
These services will align with Citadel Securities’ existing offerings of several products across fixed income, equities, derivatives, ETFs, and FX in more than 35 countries.
“The DMM business provided IMC with many benefits since we acquired it six years ago,” Sunny Khiani, managing director for IMC's US operations, said. “The decision to sell our DMM business at this time is in line with IMC's growth strategy, which focuses on our core strengths – market-making, advanced technology, and deep liquidity.”