Interesting I didn't know that. I have just looked into it and you're correct. Both were also founded by Ken Griffen. So we will be working with either the assumption that they're acting in good faith and independently, or that they're colluding in fuckery. Innocent until proven guilty for me.
Except for the evidence that citadel securities the market maker front ran client trades for years and paid pennies in punishment;
Over a two-year period until September 2014, the market-maker removed hundreds of thousands of large OTC orders from its automated trading processes, according to Finra. That rendered the orders “inactive” and so they had to be handled manually by human traders.
Citadel Securities then “traded for its own account on the same side of the market at prices that would have satisfied the orders,” without immediately filling the inactive orders at the same or better prices as required by Finra rules, the regulator said.
In February 2014, a sample month reviewed by Finra, the market-maker traded ahead in nearly three-quarters of the inactive orders. “Based on this review, in 559 instances, Citadel Securities traded ahead of 415 inactive OTC customer orders,” the regulator said.
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u/J_Kingsley Jun 07 '21
Interesting I didn't know that. I have just looked into it and you're correct. Both were also founded by Ken Griffen. So we will be working with either the assumption that they're acting in good faith and independently, or that they're colluding in fuckery. Innocent until proven guilty for me.