Big market maker

Citadel Securities bought the unit of Morgan Stanley that’s focused on electronic market-making for US equity options, a move that further cements the firm’s dominant role in the popular derivatives.

The deal will likely bolster Citadel Securities as an options market maker, filling orders both electronically and on trading floors. Similar to a designated market maker for stocks, a specialist in options is approved by an exchange and required to quote buy and sell prices beyond the normal requirements of a registered market maker.

Morgan Stanley was the last major bank in the market-making business, which is now dominated by high-frequency trading firms. Citadel Securities, founded by billionaire Ken Griffin, acquired Morgan Stanley’s on-exchange options business and took on a large portfolio of equity options positions. The deal includes specialist posts on venues including Cboe, Nasdaq, NYSE and MIAX. —David E. Rovella

What You Need to Know Today

Finding steep competition from a broadly syndicated market, private credit firms are offering one benefit to potential borrowers: leverage. Direct lenders are pitching higher leverage ratios as a sweetener for deals, particularly for companies owned by private equity firms. Tacking on more debt gives companies flexibility to make acquisitions, and can fund a dividend payout to shareholders, also known as a dividend recapitalization.

As Saudi Arabia spends trillions of dollars to reshape its economy, a little-known investment group overseen by the crown prince’s brother is emerging as a key power broker. Tharawat Holding, run by Prince Turki bin Salman, has taken on a role as a gatekeeper for foreign companies seeking to do business in Saudi Arabia.

Tharawat complements the kingdom’s massive wealth fund, which remains the main entity driving de facto ruler Mohammed bin Salman’s Vision 2030 program. The firm derives its name from the Arabic word for treasure or wealth, and insiders say it oversees a web of assets worth at least $250 billion.

Get the Mideast Money newsletter, a weekly look at the intersection of wealth and power in the region.

After years of mounting concern over deflation and the bruising price wars that have plagued much of China’s economy, Xi Jinping’s government is showing signs of finally taking action. Beijing’s messaging has noticeably shifted in recent weeks, with the Chinese leader and other top officials offering their bluntest assessment yet of the cutthroat competition that’s been dragging down prices and profits across industries, from steel and solar panels to electric vehicles.

Finding a solution would be welcome news for much of the world. A successful effort to rein in industrial overcapacity, long a source of friction with trading partners, stands to ease trade tensions and restore confidence in the globe’s second-biggest economy.

Harmonic AI, an artificial intelligence startup co-founded by Robinhood Markets Chief Executive Officer Vlad Tenev, has raised $100 million in funding to tackle a problem that’s sometimes confounded AI models: math. Founded in 2023, the Palo Alto, California-based firm aims to build AI systems that can solve complex math problems, creating what the company refers to as mathematical superintelligence. The deal values the startup at $875 million, said Tenev, who serves as the company’s executive chairman, a non-operating role.

Dartmouth College is looking to borrow more than $450 million, joining a groundswell of Ivy League issuers turning to the debt markets this year. The private university will sell about $156 million of tax-exempt bonds through a state agency and $300 million of taxable bonds to fund campus energy initiatives and housing plans, S&P Global Ratings said Thursday.

The credit grader gave the issuance a pristine AAA label, citing Dartmouth’s ample financial resources, strong fundraising and “impressive market position and demand.” The debt sale follows similar moves from many other top-tier colleges that have been building up cash in the bond market this year, triggered by the Trump administration’s attempts to cut off government funding.

What You’ll Need to Know Tomorrow

For Your Commute

Bloomberg Green Seattle: Join us July 14-16 for two days of compelling conversations where we’ll explore the urgent environmental challenges of today and the innovative ideas shaping tomorrow. Click here for details.

Enjoying Evening Briefing Americas? Get more news and analysis with our regional editions for Asia and Europe. Check out these newsletters, too:

Explore all newsletters at Bloomberg.com.