(Bloomberg) -- Billionaire Alex Gerko’s XTX Markets saw its profit tumble last year, halting a recent earnings boom that vaulted the quantitative trading firm into the ranks of the world’s top market-makers alongside Ken Griffin’s financial empire.

Profit at London-based XTX fell 25% in 2023 from a year earlier to about £827 million ($1.05 billion), according to registry filings. Both net revenue and profit for the three main UK operating entities of XTX previously more than doubled between 2020 and 2022 on the back of wild swings in financial markets, filings show.

A representative for XTX didn’t respond to requests seeking comment. 

With last year’s decline in earnings, XTX joins rivals including Griffin’s Citadel Securities that have seen a slump in the same period from easing market volatility. But the dip may prove to be just a blip for XTX if the latest performance of its bigger competitor offers any indication. Citadel Securities’ net trading revenue surged 68% to $2.3 billion in the three months through March, rebounding from a 16% drop last year. Jane Street Group’s net trading revenue was roughly flat in 2023 at $10.6 billion.

XTX, founded almost a decade ago by former Deutsche Bank AG trader Gerko, cemented its status as a major market-making firm in a post-pandemic global economy rife with volatility, even as surging inflation and rapid interest-rate increases handed steep losses to venture capital and real estate investors.

Russia-born Gerko left the Frankfurt-based bank in 2009 to join hedge fund GSA Capital, where he led currency trading operations before spinning out XTX in early 2015. XTX now handles about $250 billion in daily volume across markets spanning equities, commodities, currency and fixed income.

Gerko, a British citizen, is co-chief executive officer of XTX alongside former JPMorgan Chase & Co. executive Hans Buehler, who joined in 2022, while Deutsche Bank veteran Zar Amrolia is chairman. The firm’s other office locations include New York, Paris, Singapore and Mumbai, with an employee count of more than 200, according to its website.

Through his majority stake in XTX, Gerko has become a billionaire many times over, earning him the extra status as one of Britain’s biggest taxpayers. He now has a fortune of about $11.1 billion after XTX’s earnings slide, and is ranked 210th among the world’s wealthiest people, according to the Bloomberg Billionaires Index.

--With assistance from Alexander Sazonov, Tom Maloney, Paula Seligson and Katherine Doherty.

(Updates with wealth ranking in the last paragraph.)

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