Key insights
- Citadel Securities is expanding US equity trading services to Asian clients, focusing on high-touch block trades, particularly in semiconductor stocks. This caters to growing Asian demand for US equities and leverages Citadel's US market presence. The move could improve liquidity and access for Asian investors trading US stocks during their local business hours, but the overall impact on US equity prices is likely limited.
Investing.com -- Citadel Securities LLC is expanding its operations in Asia and plans to offer US equity block trading to clients in the region, according to market reports.
The market maker, owned by Ken Griffin, will provide what is known as "high touch" trading services, which handle larger trades and often require human intervention to reduce market impact. This represents a shift from the company’s main algorithmic trading operations.
The expansion comes as investors in Asia show increased interest in trading US stocks, particularly chipmaker shares. Many Asian investors currently stay up until midnight to track price movements in New York.
The timing advantage for Asian traders is notable. Most US-listed companies on the Philadelphia Semiconductor Index, including Intel Corp (NASDAQ:INTC). and Advanced Micro Devices Inc (NASDAQ:AMD)., report earnings after the 4 p.m. market close in New York, which corresponds to 4 a.m. in Hong Kong and 5 a.m. in Tokyo. Investor calls typically follow within an hour.
Few Asia-based brokerages currently have sufficient US business to provide this type of liquidity effectively. Citadel Securities’ presence in US markets positions the firm to fill this gap for Asian clients seeking to trade US equities during their business hours.
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