Citadel denies requesting ‘meme inventory’ buying and selling restrictions


Citadel Securities didn’t ask Robinhood or every other agency to limit or restrict buying and selling on GameStop and different so-called “meme shares” on the top of the retail-driven buying and selling frenzy in January, the market-maker stated on Tuesday.

Robinhood and a number of other different brokers restricted buying and selling in GameStop’s shares on Jan. 28 following a gorgeous two-week rally pushed by retail merchants that sparked a “brief squeeze,” resulting in billions of {dollars} in losses for Wall Road hedge funds.

“Citadel Securities by no means requested, intimated, agreed or in any other case sought to restrict or to limit the buying and selling of such securities,” Citadel Securities stated in a press release to Reuters on Tuesday.

The buying and selling halt pissed off retail buyers, capped the losses for hedge funds and drew the scrutiny of lawmakers and regulators. At a US congressional listening to in February, Citadel CEO Ken Griffin, who additionally based Citadel Securities, stated the hedge fund had not contacted Robinhood about proscribing buying and selling.

Robinhood CEO Vlad Tenev had additionally stated then: “We don’t reply to hedge funds.” The web brokerage didn’t instantly remark when contacted by Reuters.

“It should frustrate the conspiracy theorists to no finish that Vlad and I’ve by no means texted, referred to as or met one another,” Griffin stated.

Fee-free brokerages together with Robinhood have been criticized for his or her observe referred to as cost for order circulation (PFOF), beneath which they obtain charges from market-makers for routing trades to them and don’t cost customers for particular person trades.

The observe is at present beneath investigation by the US Securities and Alternate Fee. | Citadel denies requesting ‘meme inventory’ buying and selling restrictions


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