JPMorgan and Citadel Securities Clash in High-Touch Equity Trading

Competition is intensifying between JPMorgan Chase and Citadel Securities in the high-touch equity trading space, signaling a shift in the dynamic between traditional banks and modern trading firms. This rivalry underscores the evolving roles on Wall Street, where banks are increasingly viewing firms like Citadel as competitors rather than solely as clients.

JPMorgan’s Response to Citadel’s Expansion

JPMorgan Chase reportedly curtailed some trading functions provided to Citadel Securities after the latter launched a service directly competing with the bank’s high-touch equity trading offerings. Specifically, JPMorgan informed Citadel Securities in 2025 that it would no longer provide high-touch equity trading services, which involve handling trades not executed electronically and offering research-based trade ideas .

This move followed Citadel Securities’ announcement of its own high-touch equity business and the recruitment of Elan Luger, formerly the head of JPMorgan’s high-touch equities trading service, to lead the effort.

Citadel Securities’ Rise and Competitive Strategy

Citadel Securities, founded by Ken Griffin, who also leads the hedge fund Citadel, has become a market giant through electronic trading, facilitating billions of trades and processing order flows from retail investors. The firm’s expansion into high-touch equities trading directly challenges investment banks like JPMorgan, which traditionally serve large asset managers and hedge funds such as BlackRock and Millennium Management.

Citadel Securities has been sourcing block trades through investors looking to sell shares, bypassing traditional investment bank intermediaries. The firm beta tested its high-touch equity trading offering in 2025 and formally launched the business at the beginning of 2026.

JPMorgan’s Perspective and Market Dynamics

Despite the increased competition, JPMorgan remains confident in its ability to maintain and grow its market share. Troy Rohrbaugh, co-head of commercial and investment banking at JPMorgan, stated at a shareholder event that the bank has a “long track record” of successfully competing with and servicing firms like Citadel Securities. He believes any gains made by Citadel will likely reach at the expense of other competitors .

Equities trading has experienced a boom in recent years, benefiting from market volatility driven by geopolitical events and monetary policy shifts. JPMorgan’s equities trading revenue increased by 33% in 2025, exceeding $13 billion. While Citadel Securities, as a privately held company, does not disclose its financial results, reports indicate a nearly 70% jump in profits during the first quarter of 2025, reaching $1.7 billion .

The Evolving Relationship Between Banks and Trading Firms

The situation highlights a broader trend of banks and trading firms increasingly competing in overlapping areas. For a long time, banks primarily viewed trading firms as clients. However, as firms like Citadel Securities expand their capabilities, banks are recognizing them as direct competitors. JPMorgan and Citadel Securities both declined to comment on the specifics of their evolving relationship.