Citadel Securities' 50-Pound Goal Book Drives High-Speed Trading

Citadel Securities' high-speed trading is powered by an old-school "goal book", a 50-pound binder containing targets from nearly 1,800 employees, hand-delivered to the CEO annually. Bloomberg Finance reporter Katherine Doherty discussed the tome on Bloomberg Open Interest.

Citadel Securities, a Wall Street powerhouse, trades $652 billion daily across high-speed networks, making it one of the most formidable engines in modern finance. At the heart of its strategy lies an unusual tool: a 50-pound "goal book." This annual tome, containing over 5,000 discrete targets from nearly 1,800 employees, is hand-delivered to CEO Zhao Peng. The book serves as both a vision statement and a roadmap, guiding Citadel Securities' global expansion and challenging traditional banks in trading supremacy.

The goal book is meticulously crafted, with each employee contributing to its pages. It includes targets for business lines and new markets, such as the firm's expansion into India and plans for China. The process begins in January, with business heads compiling a list of initiatives, followed by marathon meetings and a detailed accountability mapping system. Despite the high-pressure environment, Citadel Securities emphasizes responsibility sharing, promising exponential career growth to attract top talent.

The goal book's impact is evident in Citadel Securities' growth. Since its founding in 2002, the firm has expanded into equities, options, fixed income, and foreign exchange. Today, it captures about 35% of US-listed retail trading volume for equities. In 2024, the firm's corporate credit trading desk is on track to trade $500 billion of investment-grade bonds, double the amount traded in its inaugural ten months.

However, Citadel Securities faces intense competition. Rival firms like Jane Street Group and Hudson River Trading are also growing rapidly, edging closer to the revenue generated by the top three Wall Street banks. Despite the cutthroat environment, Citadel Securities' unique approach to goal-setting has proven effective, fueling its success in high-speed trading.