Global Market-Making
Citadel Securities operates offices in multiple countries, including European and Asian financial centers. It participates in equity, options, fixed income, currency, and derivatives markets globally. The firm's market-making operations outside the United States are subject to the regulatory frameworks of their respective jurisdictions.
The China Operations and Settlement
Citadel Securities had trading operations in Chinese markets. In 2020, the firm paid a 670-million-yuan settlement (approximately $97 million) to Chinese regulators for trading irregularities dating to 2015. This settlement is documented in public reporting and reflects the firm's participation in one of the world's largest equity markets.
European Operations Under MiFID II
To the extent Citadel Securities conducts market-making activities in European markets subject to MiFID II, those operations must comply with European investor protection rules, including restrictions on inducements like PFOF. The firm adapts its practices to local regulatory requirements.
FX and Fixed Income Operations
Citadel Securities has expanded into foreign exchange and Treasury markets, becoming a significant participant in the U.S. Treasury market specifically. Its role in Treasury markets has attracted regulatory attention regarding Treasury reporting — which led to the FINRA fine for inaccurate Treasury transaction reporting between 2017 and 2019.