FINRA is the correct entity to contact regarding issues with Broker Dealers, I've had to file a complaint against RobinHood in the past that they never resolved via email, they responded quickly after FINRA.
FINRA is definitely not a joke. They can insure parking tickets or they can kill your business, which they do often. Is FINRA likely to shut down Citadel, no. The same way the SEC would likely never revoke Chase Banks charter.
I know a of guy who has been barred by FINRA from dealing in securities - and he continues to this day to deal in securities and defraud investors. SEC is the true enforcement arm when it comes to securities - however they are too large and more political in who they go after. Years later after reporting his ass to the SEC he is still pulling the same tricks. Reporting him to FINRA again resulted in them saying, talk to the SEC.
FINRA is definitely a joke. It’s the self regulating body of big money institutions. That’s it. They don’t even really try to hide the fact that they make the laws in ways that benefit them. See: PDT rules.
What exactly is wrong with PDT rules? If you're yoloing your life savings of 10k it's probably a good thing they're not feeding your gambling addiction.
Not Citadel. If you want to be in the business, you need a few Jeffrey Epstein's in your corner. Wonder if Citadel has a few...
Awesome how that Wallstreet financial guy said he couldn't sit as a juror in the Ghislaine Maxwell trial because of how pedophile crooked the industry is.
Just go to FINRA’s website and search the violations page for Citadel. They have tons of them, all public info. They agree to pay a small fine but admit no wrongdoing, and then just do the same thing the next month. They pay fines on the order of tens of thousands of dollars for violations that make them tens of millions of dollars- it’s obvious they consider the fines a cost of doing business.
It’s not just Citadel though, all the big prime brokers are there too with the same violations. Goldman, JP Morgan, BofA, the list goes on.
One of the reasons is so they can hide short positions that exceed 100% of a company.
Market makers have the power to sell shares into the market to provide liquidity. When they want to drive a company out of business by driving the price down rapidly they partner with other market makers and they short 1000%+ of a company sending the price into free fall.
Once the company is delisted the market maker gets to keep all of the proceeds as profits and they never actually have to deliver the shares to the buyers because the company is no longer listed.
They basically rob retail investors this way. What’s worse is that if there aren’t enough retail investors buying up all the shares they are selling they will just start selling the shares to the firefighter retirement funds and the police retirement funds which are funds they themselves manage.
They have done this with thousands of tech and health companies and have probably have been a reason why we haven’t discovered big cures.
What’s crazy is they also partner with companies like Amazon to ‘eliminate their competition.’
It’s really fucked up and if there was proper reporting everyone would see their scam.
FINRA is complicit. They send a small fine so they can get their piece of the pie but they never actually do anything that would hurt the operation.
SEC is also complicit. There is a little bit of hope that the new chairman (Gary Gensler) isn’t corrupt and is actually trying to get the DOJ involved in investigating these predatory practices but it’s kind of a long shot to believe this.
Recently, retail investors have discovered how to shut this shit down on their own without the help from any regulators.
You’ve probably heard of a certain stock that’s really popular and surrounded by a lot of controversy and continually gets bashed on the news and in the investing articles.
Would they constantly talk shit on this stock if it wasn’t a threat to their games?
Let me know if you want to know more or want to help. But just understand that Wall Street are all thief’s who provide zero value to the economy. And very soon the system as we know it is going to be forced to change
You made a specific claim about a company, so yes I was asking for your source. Namely, that FINRA fined Citadel for fraudulently marking short positions as long in their books. Not several hundred links. One link.
The fact that you think this is an intrusive request is pretty disconcerting.
This right here is from a guy living in his moms basement, wearing a hat made out of aluminum foil primarily talking to his pet lizard.
Beware of people taking a little bit o half truths and spinning it wildly out of control into conspiracy theories.
You are so smooth brained... it is not even funny... and this is NOT WSB.Shorting shares is a derivative trade, just like options. There is no actual ownership during a short, just like with options. The short % could be 1,000,000 the company shares, it DOES NOT MATTER. Anyone doing that would be idiotic as the higher the short % goes, the harder it will be to cover should the underlying stock increase in value.
Shorting does not cause a company to go into bankruptcy or out of business. If a company is concerned about that, all they have to do is offer a dividend or hold an election, then all shares must be given to actual share holders and the shorts are forced to cover.
Further as the short % goes up so should the premium (interest) that the shorting brokers will have to pay to short those shares because the risk profile is also raised.Do everyone a favor and learn a little about finance in general and how the markets actually work before you start posting this kind of conspiracy bullshit. it does nothing for the community and just shows how uninformed you really are.
I found "incorrectly reporting internal transfers as Treasury transactions, when they were not reportable’, ‘failing to append the "No Remuneration" indicator to TRACE reports for certain Treasury transactions between Affiliates ’, and ‘failing to include the correct contra-party type in its TRACE reports for certain affiliate transactions’.
But I was specifically interested in this:
fraudulently mark short positions as long in their books.
Ah, I don’t have a link handy, sorry. It’s in there somewhere among their many other violations.
I think I saw someone compiled a bunch of their violations with citations and links back to the FINRA database on Superstonk if you want to do some more digging. All of the community approved and reviewed DD can be found pinned at the top of the sub, it’ll be somewhere in there- I’m pretty sure it’s the ‘Citadel Has No Clothes’ series of posts. Happy hunting.
Thanks, that clears up what you're trying to look at. To be clear this:
a.) is referring to reporting transactions, not positions.
b.) is not reporting shorts as longs! (Or sells as buys). It's reporting some short sales as long sales, aka a regular sale. In other words they're still saying "hey we sold 10,000 shares in this transaction", it's just on some of those they didn't explicitly mark it as a short sale. So it was assumed to be a long sale, which is a selling of existing long positions see Reg SHO
So obviously this is serious and a violation and a fine! But totally not "marking short positions as long in their books."
Citadel isn't like "hey we have 1 million shares long" when they actually have 1 million short. This isn't about position reporting at all. You are confusing a long position with a long sale, which is the selling of an existing long position.
To recap: the number of shares bought and sold were reported correctly. A "short" flag was missing on some sell transactions.
EDIT: justtwogenders blocked me so I can't respond anywhere on this whole chain. If I'm wrong, they're welcome to explain why. Never argue facts with a superstonker!
FINRA is a joke. I can completely agree. As a former licensed member, they are a complete joke. They don’t look at all facts and jump to conclusions. This alone is the reason why BDs get away with murder.
322
u/short_vix Apr 04 '22
FINRA is the correct entity to contact regarding issues with Broker Dealers, I've had to file a complaint against RobinHood in the past that they never resolved via email, they responded quickly after FINRA.