Two quick news items on Citadel, followed by irresponsible speculation.
- Citadel Plays Nice With CME, It’s Swap Exchange Partner. From FinAlternatives: ” “The Chicago hedge fund giant is scaling back its role in the ELX Electronic Liquidity Exchange, which aims to challenge the CME Group’s dominance in U.S. Treasury bonds and other futures. The move comes after the two Chicago firms joined forces to found a clearinghouse for credit default swaps. That venture is scheduled to debut next month. The ELX, a joint venture of a dozen firms, including JPMorgan Chase and Citigroup, was announced in December. Citadel will continue to own a stake in the new exchange, but CEO Ken Griffin will no longer sit on its board of directors.”
- Citadel Shuts Down It’s Fund Of Funds. “Citadel Investment Group LLC, the investment firm run by Kenneth Griffin, plans to wind down a $1 billion fund that invests in other hedge funds and shift the capital to another business,” Bloomberg reports. “About 95 per cent of the money in the Fusion fund is Citadel’s and will be reinvested in a unit that helps finance new asset managers, the Chicago-based firm said today in an e- mailed statement. The remaining 5 per cent is from outside clients and will be returned.”
No word from Citadel founder Ken Griffin on whether he’s planning on taking revenge on Morgan Stanley for claiming they have no exposure to his company. We really hope so.