Jan 11, 2022 - Economy

Citadel Securities gets its first-ever outside investment

A sign showing money raised

Illustration: Megan Robinson/Axios

Citadel Securities, the electronic trading firm controlled by Ken Griffin, raised $1.15 billion from Sequoia Capital and Paradigm at a $22 billion valuation.

Why it matters: This is the first-ever outside investment in Citadel Securities, which claims to have its digital fingers in around 27% of daily U.S. stock trades. Citadel Securities also has over 1,600 global clients, including large sovereign wealth funds, and this deal could be setting it up for an IPO.

Be smart: Citadel Securities says it operates separately from Griffin's similarly-named hedge fund group, which was discussed a lot in the aftermath of last year's meme mess involving GameStop, Robinhood et al.

The bottom line: "Now that is payment for order flow." — @IvanTheK

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