Citadel Securities Clearing Own Stock Options in Break From BofA

Citadel Securities is taking a do-it-yourself approach to clearing its equity options trades, bringing an end to one part of a business relationship with Bank of America Corp. going back a quarter century.

The shift this year to taking over the the operationally demanding and liability laden task of routing options trades into central clearing houses comes as concerns grew at Bank of America that Citadel’s development into one of the dominant market makers in US options was tying up too much of the bank’s balance sheet, according to people familiar with the matter, who asked not to be named because the information isn’t public.