Ken Griffin & co. weren’t that good at being an investment bank, possibly in part because Ken Griffin spent so much of his time firing his investment-banking executives. Perhaps they’ll be better at doing the things that banks don’t want to do anymore.
Citadel Securities, one of the biggest trading firms for U.S.-listed equities and options, is set to offer trading in interest-rate swaps, according to Jamil Nazarali, who runs the Chicago-based firm's execution services business….
itadel's push into swaps follows a steady decline in the role of banks in trading those derivatives. The Bank for International Settlements said in April 2013 that transactions between dealers accounted for only 35% of turnover, down from 44% in 2010 and a peak of 66% in 2001….
The push into interest-rate swaps follows the company's debut move into offering trading services in foreign exchange in May. That has come as banks have pulled back from this market amid intensifying regulatory interest.