Quant Firm STG Group Launches Broker-Dealer to Enter Market-Making Arena

NEW YORK, NY – March 04, 2026 – STG Group, a quantitative trading firm established in 2022 by principals from the powerhouse hedge fund Squarepoint, has officially entered the fiercely competitive world of electronic market making. The firm announced the launch of its new broker-dealer division, STG Securities, a strategic move designed to transform the multi-asset trading specialist into a comprehensive, end-to-end global trading firm.

This launch marks a significant evolution for the relatively young company, signaling its ambition to move beyond proprietary trading and become a fundamental liquidity provider to the broader market. By establishing STG Securities, the firm aims to leverage its deep quantitative expertise and substantial capital base to provide competitive liquidity across a range of exchanges and asset classes, stepping onto a stage dominated by some of Wall Street's most technologically advanced players.

From Quant Shop to Market Maker

STG Group was founded with a DNA steeped in sophisticated, data-driven strategies, a direct inheritance from its founders' background at Squarepoint. Since its inception, the firm has focused on systematic and quantitative approaches to identify and capitalize on market opportunities. The creation of STG Securities represents a pivotal expansion of this model.

Where STG Group has historically acted as a self-contained trading entity supplying its own risk-bearing capital, the new division will externalize its capabilities. STG Securities is positioned to contribute deep market expertise and provide on-exchange liquidity to a wide spectrum of market participants. This strategic bifurcation allows the parent company to continue focusing on developing advanced quantitative methodologies and managing risk, while the new broker-dealer arm executes on providing liquidity and building exchange partnerships. This vertical integration is a deliberate step to capture more of the value chain in financial transactions, moving from being a market participant to a market facilitator.

Bolstered by Strategic Acquisition and Veteran Leadership

The foundation for this ambitious expansion was laid in 2024 with STG Group's quiet but significant acquisition of Automated Volatility Trading (AVT). This specialized group, which traces its lineage to a U.S. options desk at Barclays and a subsequent tenure at high-frequency trading firm GTS, brought with it a wealth of experience in systematic options trading. The integration of AVT's operations directly into the new STG Securities division provides the broker-dealer with immediate, high-level expertise in a complex and lucrative market segment.

Leading the new venture is Kirill Gelman, a 20-year veteran who has overseen strategy at AVT and its predecessor firms. Gelman's extensive resume lends significant credibility to the operation. His career includes a seven-year tenure at Lehman Brothers as the Head of the Healthcare and Dispersion desk and senior roles at Barclays after its acquisition of Lehman's assets in 2008. His FINRA registration, now held under STG Securities, LLC, confirms his qualifications and active status. Gelman’s background, which includes an MBA in Econometrics and Statistics from the University of Chicago, aligns perfectly with the quantitative-first philosophy of STG Group, blending veteran market savvy with rigorous analytical discipline.

Entering a Fiercely Competitive Arena

STG Securities is not stepping into an empty field. The electronic market-making landscape is a high-stakes, technology-driven battleground dominated by entrenched giants. Firms like Citadel Securities, Virtu Financial, Hudson River Trading, and Jane Street have spent years and billions of dollars building ultra-low-latency infrastructure, developing complex trading algorithms, and securing commanding market share across global equities, options, and fixed-income markets.

Success in this arena is often described as a technological "arms race," where microseconds matter and the cost of entry is prohibitively high. These established players leverage immense scale and sophisticated systems to provide liquidity at razor-thin margins. For a new entrant, the challenges are immense, requiring not only cutting-edge technology and substantial capital but also the ability to build trust with exchanges and clients.

STG's differentiation will likely hinge on its ability to combine its fresh, quantitative-driven perspective with the specialized expertise acquired through the AVT team. Rather than competing on scale across all asset classes immediately, its focus on systematic options trading could provide a crucial beachhead from which to expand. The firm's heritage at Squarepoint suggests a culture of relentless innovation and data analysis, which will be essential in finding an edge against the incumbents.

The Regulatory Framework and Path Forward

This strategic initiative is not a sudden development but a meticulously planned move. Public records from the Financial Industry Regulatory Authority (FINRA) show that STG Securities, LLC secured its broker-dealer registration with the SEC and FINRA approval in July 2023. This early regulatory green light indicates that the firm has spent considerable time building the necessary compliance and operational infrastructure required to operate as a registered broker-dealer in the United States.

Being a FINRA-registered firm means STG Securities is subject to a robust framework of rules governing capital requirements, best execution practices, market access, and risk management. This compliance is critical for establishing credibility and ensuring stable operations as it begins to offer liquidity on public exchanges.

With its license secured, its leadership in place, and its strategic direction clear, STG Securities now faces the ultimate test: execution. The firm is betting that its combination of advanced quantitative models, specialized options trading talent, and a robust technological backbone will be enough to carve out a meaningful presence in one of the most demanding corners of the financial world. The coming months will reveal whether this new quant-powered market maker can successfully challenge the established order and reshape the dynamics of liquidity provision.