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Citadel Wears Two Hats: As both Client and Market Maker

Traders Magazine, June 2005

Mark Longo

For decades, they have been the cloak-and-dagger arm of Wall Street. These mysterious entities trade on behalf of secretive clients, devising elaborate strategies that move markets, and, in rare instances, cause markets to meltdown. Like most unregulated entities, they prefer to stay in the shadows, emerging on occasion to unwind or increase their positions. Every few years, one of these entities becomes so big that it can't help but draw attention to itself. Such was the case in 1998 when Long Term Capital's highly leveraged spread trading threatened to implode the global financial system.

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