Citadel Securities recruits Goldman Sachs veteran to join its team

In a bold move that signals the growing power of upstart trading businesses, billionaire Ken Griffin’s Citadel Securities has appointed former Goldman Sachs executive Jim Esposito as president of the high-frequency market-making firm. Esposito, affectionately known as “Espo” to his colleagues, left his senior position at Goldman Sachs in January, only to resurface at Citadel Securities with a new and pivotal role.

The appointment of Esposito as president underscores Citadel Securities’ ambitions to challenge traditional Wall Street banks and expand its client base and partnerships. With a focus on growing the firm’s ranks and leveraging cutting-edge analytics and technology, Esposito is set to join the Miami-based company in September, reporting directly to chief executive Peng Zhao.

Founded in 2002 as a separate entity to Griffin’s hedge fund Citadel, Citadel Securities has quickly become a major player in global markets, capitalizing on new regulations that have reshaped the financial landscape. As the biggest market maker for US stocks, responsible for a third of all US retail stock trades, the firm has seen a significant increase in net trading revenue, with a projected $2.3 billion in the first quarter alone.

With Citadel Securities expanding into new asset classes and geographies, including Eurozone sovereign bonds, the firm is on track to surpass its previous revenue records. The move comes as rival Jane Street also experiences a surge in net trading revenue, highlighting the fierce competition in the high-speed trading sector.

Griffin’s strategic decision to sell a stake in Citadel Securities to venture capitalists two years ago has set the stage for a potential initial public offering, solidifying the firm’s position as one of the world’s largest market makers. As the industry continues to evolve, the appointment of Esposito signals Citadel Securities’ commitment to innovation and growth in the ever-changing financial landscape.