Sign Petition https://chng.it/S5gQ2NWXsT

The reasons behind this call for action include concerns over market manipulation, conflicts of interest, lack of transparency, and potential insider trading.

Join us in signing this petition to demand a ban on Citadel Securities for rigging the markets to their advantage. Recent insider revelations have shed light on the malpractices carried out by Citadel Securities and other high-frequency trading firms, including the use of order types not available to ordinary investors and exploiting disparities in technology to conduct “latency arbitrage.” This gives them an unfair advantage over other market participants and undermines the fairness and transparency of the markets.

Citadel Securities is a major player in high-frequency trading, which relies on complex algorithms and supercomputers to execute trades at lightning-fast speeds. This puts retail investors at a significant disadvantage as they cannot compete on the same level as high-frequency traders who have access to advanced technology and vast resources.

We call on regulators to investigate these allegations thoroughly and take appropriate action to protect the interests of investors and ensure the integrity of the stock market. Join us in calling for a ban on Citadel Securities and other high-frequency trading firms who exploit market power and technology to gain an unfair advantage.

Accounting fraud

Citadel, the parent organization, has a plethora of subsidiaries that engage in the purchasing and vending of US treasuries amongst themselves, thus resulting in a perplexing transaction loop. Upon scrutiny of each subsidiary’s accounting practices, there is a significant lack of transparency in the disclosure of pertinent information. To perpetuate the illusion of financial coverage, both the parent and affiliate companies are concealing their losses, a fraudulent scheme that has persisted for an extended period.

Despite negligible fines issued by the regulatory authority, FINRA, Citadel has continued its dubious operations with impunity. The organization is willing to pay exorbitant settlement fees while reaping substantial profits. Over time, Citadel has emerged as a preeminent market maker on Wall Street, with confidential sources revealing that Goldman executives view Citadel as the most significant threat to their trading business. Furthermore, nine industry brokers, including Robinhood, E-Trade, TD Ameritrade, Charles Schwab, WeBull, Ally Invest Securities, First Trade, and TradeStation, rely on Citadel as their order flow source.

Although these brokers do not exclusively depend on Citadel, it is worth noting that Citadel is responsible for a considerable portion of the market’s activity.

Ken Griffin

In the year 2021, Ken Griffin, the chief of Citadel, successfully evaded the calamitous effects of the “meme stock” scandal by implementing astute tactics in lobbying. The day before the trading halts, Citadel and Robinhood were accused of colluding to manipulate the market, leading to widespread controversy.

Despite this scandalous event, Griffin emerged before the House Financial Services Committee on February 18 to justify his actions. Interestingly, it was subsequently disclosed that he had made direct contributions to four committee members: French Hill, Andy Barr, Ann Wagner, and Bill Huizenga, all of whom belong to the Republican party. These actions have raised pertinent inquiries regarding the authenticity of the political process and the sway of affluent personalities over it.

The Ken Griffin Perjury

Amid claims of Ken Griffin’s dishonesty, a commotion has arisen amongst retail investors on social media, with numerous individuals alleging he has told a significant falsehood. The magnitude of this purported deceit has captured the attention of multitudes, yet the inquiry that remains is whether those in governmental authority will take action regarding these assertions.

Regrettably, past events indicate that such action is unlikely, as those in positions of power typically react only when confronted with an insurmountable public outcry or when they can attribute blame to others. Despite the severity of the charges leveled against Griffin, he has yet to confront any charges, a reality that numerous individuals ascribe to his supposed tendency to offer contributions to politicians in exchange for their silence.

A cursory examination of his political contributions corroborates this theory.

•  GRIFFIN, KENNETH C ,CHICAGO, IL, $2,000,000, October 28, 2020, Senate Leadership Fund
• GRIFFIN, KENNETH C, CHICAGO, IL ,$5,000,000, October 14, 2020,Senate Leadership Fund
• GRIFFIN, KENNETH C,CHICAGO, IL,$5,000,000,September 3, 2020,Senate Leadership Fund
• GRIFFIN, KENNETH C, CHICAGO, IL, $10,000,000, November 12, 2020, Senate Leadership Fund
• GRIFFIN, KENNETH C, CHICAGO, IL, $15,000,000, September 23, 2020, Senate Leadership Fund

On January 28, 2021, several brokers, including Robinhood, disabled the “buy” button, prohibiting retail investors from purchasing stocks. Essentially, traders could close their positions but could not open new long positions. All of this took place while hedge funds were increasing their shorts to attack the price.

Behind closed doors, conversations were occurring between Citadel and Robinhood, and the accusation is that they lied about it, not only to retail investors but also to the Government House Committee on Financial Services while under oath. These documents are attempting to demonstrate the collusion that they claim never occurred, in reality, did take place.

During the now-famous ‘GameStop’ hearing by the US House Financial Committee in February 2021, Rep Juan Vargus (California) inquired whether Griffin or anyone from his company (Citadel) had plotted or done anything to promote the restriction of buying shares in GameStop. Griffin replied with an unequivocal no

However, documents leaked by Robinhood insiders appear to contradict that statement. And if these are validated, it is evident..Ken Griffin lied under oath, which is a federal crime carrying a maximum sentence of 5 years in prison and huge fines.

Citadel and Robinhood Collusion

A legal document was lodged in the United States District Court of the Southern District of Florida as part of a class action lawsuit against various brokerages, including Robinhood, and market makers, including Citadel Securities. The complaint illuminates conversations that transpired within Robinhood on January 27th, which was one of the days trading of GameStop was halted by numerous brokerages. It also references the conversations that occurred between Robinhood and Citadel Securities.

As stated in the lawsuit, on January 27, “Citadel Securities and Robinhood’s top-level executives engaged in multiple communications that indicate that Citadel applied pressure on Robinhood.” In Slack, Robinhood COO Gretchen Howard purportedly notified CEO Vlad Tenev that she, along with other Robinhood executives, including Jim Swartwout, would be on a call with Citadel Securities at 5 PM.

Later on the same day, Robinhood Securities President and Chief Operating Officer Jim Swartwoth conveyed in an internal chat that “you wouldn’t believe the convo we had with Citadel, total mess.”

The complaint alleges that later that night, a call was arranged between Tenev and a redacted person at Citadel Securities. The lawsuit notes that Swartwout later expressed, “I have to say I am beyond disappointed in how this went down. It’s difficult to have a partnership when these kinds of things go down this way.”

The accusations were consolidated in a hashtag aimed at Citadel CEO Ken Griffin: #KenGriffinLied, which gained traction Monday afternoon when Citadel Securities asserted that it “did not ask” Robinhood or any firm to limit or restrict trading activity on January 27th.

Citadel Securities went on to claim that it was “the only major market maker during this time that provided continuous liquidity every minute of every trading day.” Another tweet stated that Ken Griffin and Vlad Tenev “have NEVER met or spoken.” The firm also tweeted a video clip of Griffin telling Congress that he did not instruct Robinhood to restrict trading, adding that he said so “truthfully.”

In two instances in the lawsuit, it is mentioned that Tenev purportedly requested to speak with Griffin, specifically because the two had never met, “not specific to this crazy issue.” The lawsuit does not indicate whether this meeting took place. In any case, Citadel Securities’s tweets and this lawsuit document have breathed new life into a slew of conspiracy theories that have surfaced here and there over the last few months. It is worth noting that Robinhood disclosed in its S-1 filing for an Initial Public Offering that it is currently being scrutinized by state, local, and federal regulators for its role in the GameStop debacle and for halting trading.

US House Committee Financial Services Report on Robinhood and Citadel

Key Finding #1: Robinhood exhibited troubling business practices, inadequate risk management, and a culture that prioritized growth above stability during the Meme Stock Market Event

Key Finding #2: Broker-dealers facing the greatest operational and liquidity concerns took the most expansive trading restrictions, although multiple broker-dealers introduced trading restrictions for a variety of risk management reasons during the Meme Stock Market Event.

Key Finding #3: Most of the firms the Committee spoke to do not have explicit plans to change their policies for how they will meet their collateral requirements during extreme market volatility or adopt trading restrictions when market volatility may warrant their introduction.

Key Finding #4: The Depository Trust & Clearing Corporation (DTCC) waived $9.7 billion of collateral deposit requirements on January 28, 2021. The DTCC lacks detailed, written policies and procedures for waiver or modification of a “disincentive” charge it calculates for brokers that are deemed to be undercapitalized and has regularly waived such charges during periods of acute volatility in the two years before the Meme Stock Market Event

“k. Robinhood and Citadel Securities engaged in “blunt” negotiations the night before the trading restrictions to lower the PFOF rates Robinhood was charging Citadel Securities”

“Like many other market makers, Citadel Securities grew increasingly concerned about the magnitude of the PFOF rebates it might be required to pay Robinhood associated with GME and AMC given Robinhood’s unique PFOF rate structure in an unprecedented trading environment.199 Neither Citadel Securities employees nor Robinhood employees who spoke with the Committee could pinpoint precisely when the two firms began negotiating PFOF rebates on January 27, 2021.200 However, it is clear that by early in the evening of January 27, 2021, Citadel Securities employees communicated their concerns regarding PFOF rebates to Robinhood, particularly regarding the skyrocketing PFOF rebates being calculated for GME and AMC.”

“Before the market opened on the morning of January 28, 2021, at approximately 5:11 a.m. EST, Robinhood Securities, Robinhood’s clearing broker, received its daily automated notice from the NSCC setting out the firm’s daily collateral deposit requirement of approximately $3.7 billion.220 Given the fact that Robinhood already had approximately $700 million on deposit with the NSCC from the day before, this automated notice outlined a requirement for Robinhood Securities to deposit an additional $3 billion in its NSCC account by 10 a.m. EST”

“As further detailed in the information that the NSCC provided to Robinhood through an automated portal, the largest components of the company’s collateral deposit requirement was a Value-at-Risk charge of approximately $1.3 billion, as well as an Excess Capital Premium charge of $2.2 billion, which Robinhood had not calculated.223 Robinhood calculated that of the $1.3 billion Value-at-Risk charge, approximately $850 million was attributable to AMC and approximately $250 million was attributable to GME.”

Citadel Ban in China

Citadel Was Banned in China for 5 Years, Fined 97 Million, For allegedly Crashing the Mainland Metal Market With Illegal Short Selling.

In 2015, Citadel Securities saw one of its accounts, managed by a Shanghai-based futures trading firm, barred from trading shares by securities regulators. Citadel Securities was the first foreign broker to be caught up in Beijing’s crackdown that barred 24 other accounts from the mainland’s two major stock exchanges.

The attack against the so-called “malicious” short-selling was part of a wider crackdown on automated trading of stocks and futures, which was blamed for alleged trading irregularities during the 2015 rout.

Citadel securities violations and fines
US regulatory fines:

In 2007, Citadel Securities was fined $22,500 by FINRA for failing to properly report short interest positions.

In 2009, Citadel Securities was fined $3 million by the SEC for allegedly engaging in improper trading practices that artificially impacted the price of securities.

In 2014, the US Securities and Exchange Commission (SEC) fined Citadel Securities $800,000 for allegedly violating the market access rule, which requires firms to have adequate risk controls and supervisory procedures in place when providing direct market access to customers.

In 2015, Citadel Securities was fined $800,000 by the SEC for violating the Market Access Rule.

In 2015, Citadel Securities was fined $1.5 million by FINRA for violating various rules related to trading activities.

In 2016, Citadel Securities was fined $3.5 million by the SEC for violating the National Market System Plan governing the consolidated data feeds that disseminate stock prices and trades to the public.

In 2017, Citadel Securities was fined $22.6 million by the SEC for misleading customers about the quality of its pricing and execution.

In 2017, the US Financial Industry Regulatory Authority (FINRA) fined Citadel Securities $1.5 million for allegedly providing inaccurate information to customers and for failing to report trades to the appropriate regulatory entities.

In 2018, Citadel Securities was fined $3.5 million by the SEC for failing to provide customers with accurate trade data.
In 2019, Citadel Securities was fined $100,000 by the Commodities Futures Trading Commission (CFTC) for exceeding speculative position limits in wheat futures.

In 2020, Citadel Securities was fined $97,000 by FINRA for failing to properly report certain equity trades.

In 2020, the US Commodities Futures Trading Commission (CFTC) fined Citadel Securities $700,000 for allegedly violating swap data reporting requirements.

In 2021, Citadel Securities was fined $700,000 by FINRA for failing to report a significant number of trades to FINRA’s Trade Reporting and Compliance Engine (TRACE).
International regulatory fines:
14. In 2017, the European Securities and Markets Authority (ESMA) fined Citadel Securities €1.1 million for breaching market-making obligations and engaging in algo-trading activity that may have contributed to market disorder.

15. In 2017, the Autorité des marchés financiers (AMF) in France fined Citadel Securities €5 million for allegedly manipulating French government bond futures.

16. In 2018, Citadel Securities was fined €1.6 million by the Italian securities regulator (CONSOB) for market manipulation and insider trading in the Italian government bond market.

18. In 2018, the Australian Securities and Investments Commission (ASIC) fined Citadel Securities AUD 360,000 for alleged trading violations related to market integrity.

19. In 2018, the Monetary Authority of Singapore (MAS) fined Citadel Securities $230,000 for market manipulation related to its trading activities on the Singapore Exchange (SGX).

20. In 2020, the French financial regulator, Autorité des marchés financiers (AMF), fined Citadel Securities €2 million for allegedly manipulating the bond market and breaching its best execution obligations.

21. In 2020, the UK’s Prudential Regulation Authority (PRA) fined Citadel Securities £1.2 million for failing to provide accurate and timely transaction reports to the regulator.

22. In 2020, the Swiss financial regulator, Swiss Financial Market Supervisory Authority (FINMA), fined Citadel Securities CHF 1.12 million for violating trading rules and engaging in market manipulation on the SIX Swiss Exchange.

23. In 2020, Citadel Securities was fined £1,445,000 by the UK Financial Conduct Authority (FCA) for inaccurate transaction reporting and failing to take reasonable care to organize and control its affairs responsibly and effectively.

24. In 2021, the UK’s Financial Conduct Authority (FCA) fined Citadel Securities £1.4 million for failing to adequately report certain trades to the regulator.

25. In 2021, Citadel Securities was fined $97,000,000 in China for alleged “malicious” short-selling practices.

26. In 2021, the Korea Financial Investment Association (KFIA) reportedly fined Citadel Securities 175 million won ($155,000) for allegedly engaging in high-frequency trading activities that violated local laws.

Citadel Advisors:
27. In 2017, the Securities and Exchange Commission (SEC) fined Citadel Advisors $22.6 million for allegedly misleading investors about the fund’s market timing practices.

28. In 2014, the firm paid $800,000 to settle charges with the Financial Industry Regulatory Authority (FINRA) for violating short-selling rules.

we are  having trouble understanding how Citadel can operate a hedge fund, and a market maker. Why is this not a blaring conflict of interest?

What Is The Definition Of Conflicts Of Interest?

Citadel LLC ( The Hedge Fund )

Citadel Securities ( Market Maker )

Citadel Connect ( NON-Registered Dark Pool )