Citadel Investment Group reportedly has separated its hedge fund business from its options market-making operations, Citadel Derivatives Group. Observers are saying the move may be a sign that the firm is preparing for an initial public offering. Consultant Josh Galper of Vodia Group told Bloomberg News that the separation would eliminate concerns that the hedge fund was making money from its link to the options market maker, and would make it therefore easier for Citadel to sell shares in either business. “Legally, it makes it cleaner,” Galper said. “No one wants to be in a position where there is a suggestion that a proprietary hedge fund is trading against the order flow of retail clients.” While the move has fueled speculation of a possible IPO in the offing, Citadel Deputy General Counsel John Nagel said in a BN interview, that the news is nothing new, for the firm, which has acted similarly since 2000 for “internal corporate purposes and efficiency reasons.”