The AMF and the ACPR have approved the applications of the hedge fund and the market making company that are opening an office in Paris.
The way is clear for Citadel and Citadel Securities who announced in November the opening of an office in Paris.
The AMF (Autorité des Marchés Financiers) and the ACPR (Autorité de Contrôle Prudentiel et de Résolution) of the Banque de France have just delivered their approval to the two entities this month. Once this step has been taken, they can now implement their project over the coming weeks and months. However, they remain very discreet about the details for the moment.
Headquartered on rue du Colonel Moll in the 17th arrondissement of Paris, Citadel France was registered at the end of last year and approved by the ACPR on May 5 as an investment firm.
Two distinct entities
The Americans Citadel and Citadel Securities are two separate entities.
Founded by Kenneth Griffin, Citadel is an alternative investment management firm that manages one of the largest hedge funds in the world (approximately $38 billion in assets). Founded in 1990 and now closed to new investor subscriptions, it has a performance of nearly 25% in 2020.
The hedge fund struggled during the 2008 financial crisis, but quickly bounced back and has been growing ever since. Citadel has been present in London since 1999 and also has an entity in Dublin. Former Fed Chairman Ben Bernanke is a senior advisor to the company.
Local talent pool
"This presence in Paris will provide us access to a strong local talent pool and enable us to further deepen our relationships with European counterparties and policymakers as the region's capital markets continue to integrate."Edwin Lin, Head of Global Fixed Income at Citadel, said in November.
The manager diversified in 2001 with the creation of Citadel Securities, a market maker. Its role is to offer buying and selling prices on financial instruments, shares, bonds, etc. to market counterparties.
Growing business
Present in Europe since 2007, the entity defines itself as one of the five main players in several stock exchanges on the continent.
"Paris offers us a unique opportunity to expand our growing business, increase proximity to our valued clients and expand our ability to attract Europe's brightest minds. We are excited to further develop our European presence and expand our client base." added Paul Hamill, Global Head of Fixed Income Clearing Corporation (FICC) Distribution at Citadel Securities.
With Paris, Citadel will have an eighteenth office in the world, in North America, Asia and Europe, including one in Singapore since last year.