Citadel Wears Two Hats: As both Client and Market Maker
Traders Magazine, June 2005
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.
All TradersMagazine.com articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, online technology directory, the iPad App, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and trading strategies.