Citadel Securities LLC plans to hire a head for its India operations and add more traders, according to people familiar with the matter, as the market-making giant expands its presence in one of the largest equity markets globally.
The US-based firm, part of Ken Griffin’s hedge fund and trading empire, is also looking to add at least six employees across functions, including trading, to bolster its 10-member team in the country, they said, asking not to be identified as the information is not public.
While Citadel Securities opened its India office two years back, the unit already contributes more than 5% of its global revenues, the people said. A spokesperson for the company declined to comment on the hiring plans for the Indian entity.
The chief operating officer would be responsible for navigating the regulatory landscape and interacting with the nation’s market watchdog, the Securities and Exchange Board of India, the people said. The person would also oversee the unit’s relationship with the local stock exchanges, according to the people.
India’s booming equity market has attracted several high-speed trading firms including Optiver BV, IMC Trading and Jump Trading. However, some regulatory measures aimed at curbing excessive speculation may threaten growth after they took effect from this Wednesday.
The nation’s equity derivatives segment has exploded in size in the last five years, with the country now accounting for more than 80% of the global volumes by contracts traded.
Citadel’s India unit, which has a presence in cash equities and stock derivatives in India, reported total revenue of 29 billion rupees ($344 million) for the 12 months ended March, according to filings made to India’s corporate affairs ministry.
Citadel Securities isn’t alone in benefitting from the use of cutting-edge algorithms to profit from tiny differences in stocks and options prices in India. The technology helped foreign investors and local proprietary trading desks pocket $7 billion in gross profits from trading futures and options in the financial year ended March, according to a study by the market regulator.
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