Citadel Securities Eyes OTC Options to Boost Market-Making Clout

Citadel Securities, a pillar of billionaire Ken Griffin’s market-making and hedge fund empire, is seeking a foothold in a corner of the options world traditionally dominated by global banks.

A unit of the firm is applying to become an over-the-counter derivatives dealer under a 1998 Securities and Exchange Commission rule intended to help broker-dealers compete with banks and foreign firms, filings show.

Ken Griffin

Photographer: Christopher Dilts/Bloomberg

Citadel Securities’ technological prowess helped it capture more than 30% of daily trading volume in the US market for listed equity options — those that trade on an exchange. Now the Miami-based firm is vying ...