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"Citadel’s 2024 statement shows $2.159 TRILLION in gross derivatives....

"Citadel’s 2024 statement shows $2.159 TRILLION in gross derivatives....
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by kristen shaughnessy, via X

"Citadel’s 2024 statement shows $2.159 TRILLION in gross derivatives.... ...But wait — there’s more. Palafox Trading LLC (Citadel’s obscure inner sanctum) has $35B in its own notional exposure..." @ODB123

Here's why Citadel's reported trillions in exposure is very concerning

-a "small" loss could mean billions of dollars

-If a counterparty defaults, the market crashes or if a stock it is heavily short in spikes, Citadel would have big problems.

-Citadel's reported exposure is 3-4x times the GDP of Switzerland, which was $800 billion in 2024. It's 10-12% of the U.S. GDP - $28 trillion in 2024.

-If Citadel negotiates a lot of its derivatives directly with counterparties (a bank or another hedge fund) it could face big losses if one of those counterparties goes under.

-Because Citadel is such a big player in the financial market if one of its counterparties is forced to unwind, or goes under, that will have a huge ripple effect on other banks, hedge funds and investors.



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