Citadel Securities, led by billionaire founder Ken Griffin, has emerged as the largest market-maker on the New York Stock Exchange. The company specializes in high-frequency trading, where transactions occur in fractions of a second, capitalizing on minimal price deviations that exist for mere milliseconds. This lightning-fast approach, coupled with access to vast amounts of data, has propelled Citadel Securities to success. Alongside competitors like Virtu and Susquehanna International Group (SIG), Citadel acts as an intermediary, bringing buyers and sellers together in the financial world.One key factor contributing to the success of high-frequency traders is the practice of “payment for order flow” (PFOF). This model, popularized by online broker Robinhood, allows customers to trade for free while the broker sells their order information to firms like Citadel. This arrangement has drawn attention from regulators, but it remains a lucrative business for Citadel and its counterparts.Ken Griffin faced scrutiny during the Gamestop stock frenzy in January 2021 when he was accused of influencing Robinhood to restrict further purchases of Gamestop shares. However, Griffin denied these allegations during a hearing in Washington. The incident was recently depicted in the Hollywood film “Dumb Money,” which prompted Griffin’s lawyers to address concerns about the portrayal of Citadel Securities.Criticism of Citadel Securities and PFOF has been growing, particularly in Washington. Nevertheless, the company continues to thrive, leveraging speed, information, and its position as a major player in the financial industry. Griffin’s leadership style, characterized by heavy investments in people and technology, has contributed to Citadel’s success. As he considers supporting former South Carolina governor Nikki Haley and plans to build a new skyscraper in Manhattan, Griffin’s influence in both finance and politics remains significant.

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