Peng Zhao of Citadel is Interfering with Capital Markets
Formula One and financial mathematics are similar. Both industries are high-stakes, fast-paced, adrenaline-fueled. The Monaco Formula One is as important to racing drivers as ‘Battle of the Quants’ is to financial mathematicians. Financial mathematicians have Lando Norris-like figures. Peng Zhao of Citadel is upsetting financial markets today.
After joining Citadel Securities, which as a senior statistical researcher, Peng Zhao rose quickly. Ken Griffin’s hedge fund and market maker Citadel Securities disrupt markets in different ways. Their bases are in Miami.
More difficult than Harvard, What distinguishes Citadel Securities?
At Disruption Banking, we often write about trading-investment banks. These financial firms seldom disclose their teams, income, or strategies. Some competitors are less apparent than Citadel Securities. On its ‘In the Media’ page, the corporation features Bloomberg, CNBC, Reuters, and Business Insider articles.
Peng Zhao, like Lando Norris from McLaren’s Young Driver Programme, became CEO at 35 for Ken Griffin. Zhao may not have 2.8 million X followers, but his business outperformed Deutsche Bank and Barclays last year. Full-year trading revenue jumped 55% to $9.7 billion in 2024.
Zhao and Ken Griffin sponsored a Paris Olympics corporate excursion last year. Zhao mentioned Olympic swimmer Summer McIntosh’s three gold and one silver medals in Paris. A young intern at Zhao’s company was compared to an Olympic player who becomes famous around the world by winning gold medals. He said he “really understands the tiny distinction between the gold medalist and swimmers that weren’t on the podium” after watching the Olympics. It’s tenths or hundredths of an second.”
Formula One drivers too. It’s tougher to intern at Citadel Investments than at Harvard, much like Formula One is almost impossible. Citadel’s 11-week internship program had a 0.5% acceptance rate in 2023, according to Business Insider. The Harvard admittance rate is 3.2%.
Zhao solely wants financial services gold medalists. He expects future capital market champions are interning at his business.
Citadel Securities Hires Top Talent
Most Citadel Securities efforts emphasize engaging skilled workers. Some are seasoned technologists as well as financial services professionals.
Citadel Securities recruited Herb Sutter as a technical fellow last year to assist engineers grasp C++ to boost productivity. Before leaving, Sutter worked for Microsoft for 20 years. Citadel Securities CTO Josh Woods said Herb was one of the most prolific C++ professionals, writers, and lecturers.
The company has continued to attract market talent this year. After a decade at Goldman Sachs, Scott Rubner joined Citadel Securities in March. Rubner joins Citadel’s institutional derivates unit, per Bloomberg. Kate Gandolfo from JP Morgan and Brian Connors from the investment bank RBC are also joining Citadel Securities’ sales team. Jim Esposito, one of the most senior executives at Goldman Sachs, joined Citadel Securities as President in the summer of 2024, reporting directly to Zhao. This drive to expand the number of Goldman Sachs graduates came after Esposito made his move.
Citadel Securities added two senior personnel last month, Bloomberg reported. Goldman Sachs’ Keith Cynar and Morgan Stanley’s Jordan Brink co-lead U.S. rate sales. Both guys begin in May. The hiring continues.
Citadel Securities Promotes Winning Mindset
HSBC was reportedly interested in a Citadel Securities purchase last month. Citadel Securities previously applied to open a mainland China brokerage.
The market maker is going into bond and commodities trading. The company competes directly with global banks. Citadel Securities and Jane Street, which we covered last week, are pressuring banks.
Finally, Zhao saw digital assets. The company wants to join Coinbase and Binance’s market makers. Supporting crypto exchange EDX Markets since 2022 has allowed it to experiment with digital assets. Having served the digital asset market since 2017, Jane Street is ahead of its goals.
Zhao is recruiting top talent for Citadel Securities, like Formula One teams. Citadel and McLaren excel at keeping calm in high-stakes sectors where split-second choices may make or ruin billions.
Zhao, from Beijing and Berkeley, gives Citadel’s Wall Street game a worldwide perspective. British-Belgian Norris competes for the Union Jack but has a worldwide audience. Zhao in banking and Norris in Formula One transcend cultures while competing on global platforms.
