Financial and Business News

STG Expands into Broker-Dealer Operations with New Division to Provide Exchange Liquidity

Wednesday, 04/03/2026 | 15:14 GMT by Tareq Sikder
  • The securities division integrates AVT to expand systematic options trading using the group’s technology and capital.
  • The launch aligns with an industry trend, including Marex’s December 2025 acquisition of Winterflood Securities.
A screenshot from STG’s official website
A screenshot from STG’s official website

STG Group, a multi-asset trading firm, has launched a broker-dealer division called STG Securities. The division will operate within the group’s broader electronic market-making and trading operations.

The launch reflects a wider industry trend of trading firms expanding into market-making and broker-dealer services. For example, Marex Group acquired UK market maker Winterflood Securities in December2025. Winterflood serves over 400 institutional clients and provides execution, market-making, and custody services.

STG Integrates AVT Into Securities Division

Founded in 2022, STG Group has gradually expanded across global markets. In 2024, it acquired Automated Volatility Trading, a U.S. options group previously part of Barclays and later GTS. AVT’s operations have been integrated into STG Securities to enhance the firm’s systematic options capabilities.

STG Securities will use STG Group’s existing technology, quantitative expertise, and capital to provide liquidity on exchanges and through partnerships. The division is led by Kirill Gelman, who has over 20 years of experience at AVT and its predecessor firms, overseeing strategy in options trading.

STG Provides Capital, Market Liquidity

STG Group provides risk-bearing capital and quantitative methods to manage trading opportunities in real time. STG Securities will focus on applying this expertise on exchanges, offering liquidity to market participants.

The group was founded by principals from Squarepoint and operates independently of its investment management business.

Hidden Road Gains Broker-Dealer Approval

Other firms have recently taken similar regulatory steps. Hidden Road Partners CIV US LLC, a subsidiary of Hidden Road, received approval from the Financial Industry Regulatory Authority to operate as a broker-dealer.

The announcement followed the company’s disclosure of a definitive agreement to be acquired by Ripple for $1.25 billion. With the registration, Hidden Road can expand its fixed income prime brokerage platform.

The licence allows it to provide prime brokerage, clearing , and financing services for fixed income assets. The firm said the approval supports the development of its fixed income operations and broadens services available to institutional clients.

STG Group, a multi-asset trading firm, has launched a broker-dealer division called STG Securities. The division will operate within the group’s broader electronic market-making and trading operations.

The launch reflects a wider industry trend of trading firms expanding into market-making and broker-dealer services. For example, Marex Group acquired UK market maker Winterflood Securities in December2025. Winterflood serves over 400 institutional clients and provides execution, market-making, and custody services.

STG Integrates AVT Into Securities Division

Founded in 2022, STG Group has gradually expanded across global markets. In 2024, it acquired Automated Volatility Trading, a U.S. options group previously part of Barclays and later GTS. AVT’s operations have been integrated into STG Securities to enhance the firm’s systematic options capabilities.

STG Securities will use STG Group’s existing technology, quantitative expertise, and capital to provide liquidity on exchanges and through partnerships. The division is led by Kirill Gelman, who has over 20 years of experience at AVT and its predecessor firms, overseeing strategy in options trading.

STG Provides Capital, Market Liquidity

STG Group provides risk-bearing capital and quantitative methods to manage trading opportunities in real time. STG Securities will focus on applying this expertise on exchanges, offering liquidity to market participants.

The group was founded by principals from Squarepoint and operates independently of its investment management business.

Hidden Road Gains Broker-Dealer Approval

Other firms have recently taken similar regulatory steps. Hidden Road Partners CIV US LLC, a subsidiary of Hidden Road, received approval from the Financial Industry Regulatory Authority to operate as a broker-dealer.

The announcement followed the company’s disclosure of a definitive agreement to be acquired by Ripple for $1.25 billion. With the registration, Hidden Road can expand its fixed income prime brokerage platform.

The licence allows it to provide prime brokerage, clearing , and financing services for fixed income assets. The firm said the approval supports the development of its fixed income operations and broadens services available to institutional clients.

Topics
institutional
institutional broker
STG Group
broker-dealers
About the Author: Tareq Sikder
Tareq Sikder
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A Forex technical analyst and writer who has been engaged in financial writing for 12 years.

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