Susquehanna’s Algorithmic Trading: Speculation and Uncertainty in the Age of Retail Investing
Susquehanna International Group is a company that specializes in buying and selling stocks at lightning speed to make a profit. Their business model relies on gaining small amounts of money each time they trade, often in milliseconds. Recently, they were found to have a 2% stake in a blank-check company that merged with Donald Trump’s social media company. This has led to speculation that the company’s founder, Jeff Yass, a Republican mega-donor, may be funneling money to Trump. However, Susquehanna has stated that they remain neutral on the stock and own other securities, like options, that offset their stock holdings.
Susquehanna’s primary focus is on providing bids and offers in the market, rather than evaluating the value of investments. The blank-check company, Digital World, has attracted the attention of algorithmic market-makers and quant funds who see it as a gauge of Trump supporters’ sentiment. Quantitative traders are drawn to retail trading since it is often driven by individual investors rather than larger economic trends. In addition to their stock trading business, Susquehanna also has a private-equity and venture-capital arm. They own a significant stake in TikTok, which has raised further speculation about Yass’s potential influence due to Trump’s changing stance on the social media platform. Ultimately, Susquehanna’s role in the stock market is to provide liquidity and make trades, rather than necessarily investing based on the underlying value of the assets.
