Jane Street and Citadel Securities had strong performance in the third quarter, with the potential to set a record for the entire year

Jane Street and Citadel Securities' trading business revenue growth in the third quarter further eroded the dominance of Wall Street's major banks in this field, positioning these two market makers to potentially set annual records. According to media reports citing informed sources, Jane Street's revenue grew by 18%, bringing the company's third-quarter revenue to $6.83 billion, ranking just behind JP Morgan and Goldman Sachs. Jane Street's net profit for the third quarter was $3.73 billion, up from $3.63 billion in the same period last year. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $4.55 billion, compared to $4.32 billion in the same period last year. The company's spending on compensation and benefits in the third quarter reached $1.94 billion, a 63% increase from $1.19 billion a year ago. Additionally, informed sources indicated that Citadel Securities' related business revenue grew by 9% to $2.64 billion. Citadel Securities' net profit in the third quarter increased by 7%, reaching approximately $1.05 billion, with a cumulative total of about $3.7 billion for the first nine months of the year. Both Jane Street and Citadel Securities benefited this year from a surge in trading activity and price volatility, often stemming from U.S. President Trump's tariffs and policy adjustments. Trump's statements repeatedly forced investors to reconfigure their portfolios, which was a significant boon for banks and other market makers that help clients buy and sell assets. The competitors of the aforementioned two companies, Hudson River Trading, saw its third-quarter revenue soar by 81% year-on-year to $3.7 billion, according to previously disclosed information from informed sources. This company is also expected to set an annual record. Founded in 2000, New York-based Jane Street initially started with trading American Depositary Receipts (ADRs) and later expanded into ETFs. As the electronic trading of various assets, including corporate bonds, has increased, the company has also expanded. New entrants like Jane Street attempt to combine new technologies with refined risk-taking, facing fewer regulatory restrictions in managing their own capital compared to banks. In addition to traditional market-making operations, Jane Street also has a trading department similar to a hedge fund, which can enhance its earnings. Citadel Securities has a separate brother hedge fund company that is not included in the market-making department's revenue