Citadel Securities denies involvement in ‘meme stock’ trading restrictions By Reuters

© Reuters.

(Reuters) – Citadel Securities didn’t ask Robinhood (NASDAQ:) or some other agency to limit or restrict buying and selling on GameStop (NYSE:) and different so-called “meme shares” on the top of the retail-driven buying and selling frenzy in January, the market-maker mentioned on Tuesday.

Robinhood and several other different brokers restricted buying and selling in GameStop’s shares on Jan. 28 following a shocking two-week rally pushed by retail merchants that sparked a “quick 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 mentioned in an announcement 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 U.S. congressional listening to in February, Citadel LLC CEO Ken Griffin, who additionally based Citadel Securities, mentioned the hedge fund had not contacted Robinhood about limiting buying and selling.

Robinhood CEO Vlad Tenev had additionally mentioned then: “We do not reply to hedge funds.” The net 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 mentioned.

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

The follow is presently underneath investigation by the U.S. Securities and Change Fee.

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Fusion Media or anybody concerned with Fusion Media won’t settle for any legal responsibility for loss or harm because of reliance on the data together with information, quotes, charts and purchase/promote alerts contained inside this web site. Please be totally knowledgeable relating to the dangers and prices related to buying and selling the monetary markets, it is without doubt one of the riskiest funding kinds potential.

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