STG Group Launches Broker-Dealer Division

Multi-asset trading firm STG Group has launched a new broker-dealer division, STG Securities. The division will operate within the group's broader electronic market-making and trading operations. This move reflects a wider industry trend of trading firms expanding into market-making and broker-dealer services.

Founded in 2022, STG Group has expanded globally and acquired Automated Volatility Trading (AVT) in 2024. AVT's operations have been integrated into STG Securities to enhance systematic options capabilities. The new division will leverage STG Group's technology, quantitative expertise, and capital to provide liquidity on exchanges and through partnerships. It is led by Kirill Gelman, who brings over 20 years of experience from AVT and its predecessor firms.

STG Group provides risk-bearing capital and quantitative trading methods. STG Securities will focus on applying this expertise on exchanges to offer liquidity to market participants. The group was founded by principals from Squarepoint and operates independently of its investment management business.

In a related regulatory development, Hidden Road Partners CIV US LLC, a subsidiary of Hidden Road, has received approval from FINRA to operate as a broker-dealer. This follows the company's disclosure of a definitive agreement to be acquired by Ripple for $1.25 billion. The license allows Hidden Road to expand its fixed income prime brokerage platform, providing prime brokerage, clearing, and financing services for fixed income assets. The firm stated the approval supports the development of its fixed income operations and broadens services for institutional clients.