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    Citadel Securities uses social media to battle online trolls

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    Citadel Securities used social media to counterattack “Internet conspiracies and Twitter mobs” accusing US market makers of playing an important role in determining trading restrictions on broker Robin Hood’s Meam shares.

    This move is a significant change in the approach for Chicago-based groups that have historically hampered the often flimsy theory of the impact inherited on platforms such as Twitter.

    However, Citadel Securities has changed its course due to a class action proceeding filed by four traders in a Florida court in late September and an increase in trending hashtags on Twitter. Filing alleges that brokerage firms, including Robin Hood, have colluded with market makers to prevent investors from buying stock.

    “Some people still refuse to believe that Americans have landed on the moon,” Citadel Securities said in a tweet. “The plaintiff’s lawyer hid the facts from the courts and the general public, unleashing a theory that was unfounded by conspiracy theorists.”

    Citadel’s market maker is a long-recognized Boogeyman in the retail section of social media sites such as Reddit and Twitter. They believe the group is the biggest beneficiary of the transition to high-speed trading in the 2010s, and the retail trading boom during the pandemic.

    According to Bloomberg’s data this week, the company accounted for about 45% of all meme shares ahead of its rivals such as Virtu Financial, GTS and Two Sigma in January. Since then, its share has fallen to 34%, slightly above Virtu.

    However, retailers focused on the January “meme stock” episode, where overwhelming volumes of transactions under names such as GameStop and AMC were forced to limit transactions to broker Robin Hood.

    Robin Hood said he was forced to move due to the large margin claims from the clearinghouse NSCC. I had to find $ 3 billion within a few hours. This is the number negotiated up to $ 700 million.

    Robin Hood, like any other broker, sells its clients’ transactions to market makers. The market maker promises to execute the transaction at the current market price or higher. Citadel Securities is the largest on the market, with price improvements of approximately $ 1.5 billion last year, according to Bloomberg data. As the largest market maker, it paid the most commissions to brokers at $ 1.1 billion.

    Ken Griffin, a major shareholder of Citadel and also running another hedge fund, testified at a subsequent hearing that Citadel Securities did not file a proceeding against Robin Hood. His Wikipedia page has been polluted recently.

    The latest proceedings allege that other executives at Citadel Securities knew in advance that Robin Hood would limit transactions from email exchanges between employees of the company. Market makers called it a “ridiculous story.”

    “It’s clear that Robin Hood has restricted trading in response to a $ 3 billion margin claim from NSCC. Multiple documents, statements, and contemporaneous communications confirm this.”

    He added that the first time he learned of Robin Hood’s trading restrictions was on a Twitter post. Robinhood CEOs Griffin and Vladimir Tenev added that they had never met or spoken to them.

    Citadel Securities uses social media to battle online trolls Source link Citadel Securities uses social media to battle online trolls

    The post Citadel Securities uses social media to battle online trolls appeared first on California News Times.

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