Susquehanna International Group

Last updated
Susquehanna International Group, LLP
Company type Privately held (LLP)
Industry
Founded1987
Founders
Headquarters Bala Cynwyd, Pennsylvania, U.S.
Area served
14 offices worldwide (as of 2022)
Products
RevenueIncrease2.svg $7.2 billion (2024) [1]
Number of employees
3,000+
Website sig.com

Susquehanna International Group, LLP (SIG) is a privately held, global trading and technology firm. SIG comprises a number of affiliated entities specializing in trading and proprietary investments in equities, fixed income, energy, commodity, index and derivative products, private equity and venture capital, research, customer trading and institutional sales.

Contents

SIG is a specialist or DPM (designated primary market maker) in approximately 600 equity options and 45 index options on the CBOE, AMEX, PHLX, and ISE, including equities such as Google, Goldman Sachs, JPMorgan Chase, GE, PepsiCo, and Microsoft, and indices such as Nasdaq and Russell 2000 options.

The firm employs more than 3,000 people in offices across North America (New York City, Chicago, San Francisco, Philadelphia, Boston, Stamford), Australia (Sydney), Europe (Dublin, London) and Asia (Shanghai, Beijing, Hong Kong, Tokyo). [2] [3]

History

SIG was founded in 1987 by six entrepreneurs, including Arthur Dantchik and Jeff Yass, who met in the late 1970s at the State University of New York at Binghamton, where they gathered to play cards. [4] By October 1988, the firm had 100 employees. The company generated $30 million in annual revenue in its first year. [4]

In 1996, SIG founded Heights Capital Management in San Francisco, which focuses on PIPE investments in healthcare and technology.

In 2005, SIG launched SIG China, its venture capital operation in China. As of 2022, the firm had invested in over 350 companies with over 70 exits. [5] [ non-primary source needed ]

In 2006, SIG launched Susquehanna Growth Equity, which invests in software and information services, and offers growth stage funding to companies operating in the U.S. and Israel. [6] At this point, SIG had grown to over 12 offices throughout North America, Europe, and Asia. [7]

The same year, the firm invested in Kuxun, a search engine company, which was sold three years later, in 2009, to Expedia. [8]

The firm invested $5 million into ByteDance, the parent company of TikTok, in 2012 when ByteDance was founded. As of 2020, its stake in ByteDance represented 15 percent of its fully-diluted capitalization table and was valued over $15 billion on paper. [9]

In 2013, SIG acquired G1 Execution Services LLC (G1X) from E-Trade. [10]

In 2014, SIG expanded its venture capital operations to Japan.

In 2017, SIG launched Susquehanna Private Capital, LLC, which focuses on buyouts of U.S. middle market companies in the aerospace, industrials, consumer, healthcare, and business and government services industries. [11]

Also in 2017, SIG established Nellie Analytics, a Dublin-based sports betting company. [12]

As of 2018, the firm traded about seven percent of U.S. ETF volume and more than $1.5 trillion in ETFs globally on an annual basis. [4]

As of 2022, the firm had 14 offices worldwide.

Affiliates

Allegations of front-running client accounts

In 2009, the California Public Employees' Retirement System led a class action lawsuit against SIG and other broker-dealers, including Goldman Sachs, Bank of America, Van der Moolen, and others, for improperly executing trades for their dealer accounts ahead of their clients. The lawsuit reached a settlement in 2012, when the defendants, including SIG, agreed to a $18.5 million settlement. [15]

Allegations of spoofing stock

In 2022, Northwest Biotherapeutics claimed in a suit filed in a Manhattan federal court that SIG, Citadel Securities, Virtu Financial, and other market making firms engaged in repeated spoofing that drove Northwest's share price downward. [16]

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References

  1. "Bloomberg Billionaires Index". 21 March 2024.
  2. "Susquehanna International Group (SIG) Graduate Programmes". Prosple Australia/GradAustralia. Retrieved 2024-03-21.
  3. "SIG Locations". sig.com. Retrieved 2024-03-21.
  4. 1 2 3 "The Poker Aces Playing a Key Hand in the $5 Trillion ETF Market".
  5. "About Us".
  6. "SIG Venture Capital".
  7. "Susquehanna launches US private equity arm".
  8. "The Philadelphia Inquirer".
  9. "Secretive High-Speed Trading Firm Hits Jackpot With TikTok".
  10. Baker, Nick (October 23, 2013). "E*Trade Sells Market Making Unit to Susquehanna for $75 Million". Bloomberg.
  11. "Susquehanna International Group, LLP Announces Launch of Susquehanna Private Capital, LLC".
  12. Chellel, Kit; Massa, Annie (October 30, 2017). "A Well-Known Quant Firm Is Looking for Traders Who Want to Bet on Sports". Bloomberg.
  13. "About".
  14. https://www.influencewatch.org/non-profit/susquehanna-foundation/
  15. "Specialist firms agree to $18.5 mln settlement in class action".
  16. "Citadel Securities, Virtu Accused of Spoofing Biotech Stock".