Major global market maker Citadel Securities has reached a preliminary agreement to acquire IMC’s Designated Market Making (DMM) business on the floor of the New York Stock Exchange (NYSE).

The deal is expected to close during the fourth quarter of 2020, pending the completion of a definitive agreement and other customary closing conditions. Until the transaction closes, each DMM business will keep operating independently.

Following the completion of the transaction, Citadel Securities is set to strengthen its DMM position on the NYSE. Citadel Securities has been a DMM on the NYSE since 2016.

IMC has been a DMM on the NYSE since 2014, when it acquired Goldman Sachs’ DMM business. Since 2014, IMC has expanded its market making operations with an increased focus on ETFS and options and has also increased its U.S. operations almost two-fold to nearly 400 people in support of its trading operations growth.

The sale of the DMM business at this time, which represents a small portion of its overall U.S. operations, is in line with IMC’s growth strategy. IMC is committed to growing its ETF and options business, as evidenced by its ongoing performance as a Lead Market Maker in over 150 ETFs and a Lead Market Maker in over 500 Options classes, as well as registered market maker in all products it trades.

“We are thrilled to further extend our presence at the New York Stock Exchange,” said Joe Mecane, Head of Execution Services for Citadel Securities. “We look forward to building new relationships and bringing the benefits of our leading liquidity offering and exceptional client service to the additional issuers who will be joining us as a result of this transaction.”

“The DMM business provided IMC with many benefits since we acquired it six years ago. The decision to sell our DMM business at this time is in line with IMC’s growth strategy, which focuses on our core strengths –market making, advanced technology and deep liquidity,” said Sunny Khiani, managing director for IMC’s U.S. operations. “After an extensive process, we are excited to be able to execute this business transfer with Citadel Securities, as we know our issuers will continue to be well-served by their DMM expertise.”

Citadel Securities trades in more than 35 countries around the world and provides liquidity in a variety of products across fixed income, equities, derivatives, ETFs and FX.