XTX
Markets, the algorithmic trading firm founded by former Deutsche Bank trader
Alexander Gerko, reported a more than 50% increase in earnings for 2024 as the
company capitalized on market volatility and expanded its global trading
operations.
XTX Markets Posts Record
£1.28 Billion Profit
The
London-based market maker’s three main UK operating entities generated a combined
revenue of £2.74 billion last year, up from £2 billion in 2023, according to
company documents. Net profit reached a record £1.28 billion, compared with
£835 million the previous year.
XTX
Technologies, the company’s largest UK entity, led the growth with a revenue of
£2.04 billion in 2024, up from £1.35 billion in 2023. XTX Markets Trading Limited
contributed £636 million, while XTX Markets Limited added £61 million to the
total.
At XTX
Technologies, the company paid 113 staff an average of £435,814 last year, a
33% increase from 2023’s average of £326,735. In March, the entity also paid a
dividend of £404 million to its holding company, which is controlled by Gerko.
This
represents a significant improvement in results, following
XTX Markets’ reported decline of nearly 24% in profit for 2023 and a 20% drop
in revenue compared to the record year of 2022.
The Dominance of Algo
Trading
The firm’s
performance highlights the growing dominance of algorithmic trading firms that
have captured market share from traditional financial institutions. XTX’s
results come as rival Citadel Securities reported $9.7 billion in net trading
revenue for 2024, a 55% increase from the previous year.
The
company’s success has made Gerko, who owns approximately 75% of XTX, one of
Britain’s wealthiest individuals with an estimated net worth exceeding $10
billion.
XTX has
invested heavily in advanced computing infrastructure, including more than
25,000 graphics processing units (GPUs), primarily from Nvidia. Earlier this
year, the company announced plans
to invest €1 billion in a data center complex in Finland to support its
expanding computational needs. The facility is expected to be operational by
2026 with an initial computing capacity of 22.5 megawatts.
“We’re
building ahead of our needs to establish a backbone for future growth,” said
Joshua Leahy, Chief Technology Officer at XTX Markets. “Our need for compute
has outgrown available leasing options.”
In the
meantime, the company has hired
Timothy James Osborne Throsby, the former CEO of Barclays, as Director.
Founded in
2015, XTX has rapidly established itself as one of the world’s largest
algorithmic trading firms, handling approximately $250 billion in daily trading
volume across 35 countries. The company employs more than 250 people globally
and has expanded beyond its initial focus on foreign exchange markets to trade
equities, fixed income, commodities, and cryptocurrencies.
XTX
Markets, the algorithmic trading firm founded by former Deutsche Bank trader
Alexander Gerko, reported a more than 50% increase in earnings for 2024 as the
company capitalized on market volatility and expanded its global trading
operations.
XTX Markets Posts Record
£1.28 Billion Profit
The
London-based market maker’s three main UK operating entities generated a combined
revenue of £2.74 billion last year, up from £2 billion in 2023, according to
company documents. Net profit reached a record £1.28 billion, compared with
£835 million the previous year.
XTX
Technologies, the company’s largest UK entity, led the growth with a revenue of
£2.04 billion in 2024, up from £1.35 billion in 2023. XTX Markets Trading Limited
contributed £636 million, while XTX Markets Limited added £61 million to the
total.
At XTX
Technologies, the company paid 113 staff an average of £435,814 last year, a
33% increase from 2023’s average of £326,735. In March, the entity also paid a
dividend of £404 million to its holding company, which is controlled by Gerko.
This
represents a significant improvement in results, following
XTX Markets’ reported decline of nearly 24% in profit for 2023 and a 20% drop
in revenue compared to the record year of 2022.
The Dominance of Algo
Trading
The firm’s
performance highlights the growing dominance of algorithmic trading firms that
have captured market share from traditional financial institutions. XTX’s
results come as rival Citadel Securities reported $9.7 billion in net trading
revenue for 2024, a 55% increase from the previous year.
The
company’s success has made Gerko, who owns approximately 75% of XTX, one of
Britain’s wealthiest individuals with an estimated net worth exceeding $10
billion.
XTX has
invested heavily in advanced computing infrastructure, including more than
25,000 graphics processing units (GPUs), primarily from Nvidia. Earlier this
year, the company announced plans
to invest €1 billion in a data center complex in Finland to support its
expanding computational needs. The facility is expected to be operational by
2026 with an initial computing capacity of 22.5 megawatts.
“We’re
building ahead of our needs to establish a backbone for future growth,” said
Joshua Leahy, Chief Technology Officer at XTX Markets. “Our need for compute
has outgrown available leasing options.”
In the
meantime, the company has hired
Timothy James Osborne Throsby, the former CEO of Barclays, as Director.
Founded in
2015, XTX has rapidly established itself as one of the world’s largest
algorithmic trading firms, handling approximately $250 billion in daily trading
volume across 35 countries. The company employs more than 250 people globally
and has expanded beyond its initial focus on foreign exchange markets to trade
equities, fixed income, commodities, and cryptocurrencies.
This post is originally published on FINANCEMAGNATES.
