Tag: Citadel Scandal (Page 2 of 7)

Citadel High Frequency Trading: Fined by Korea’s Regulators

February 2, 2023 / Frank Nez

Citadel High Frequency Trading: Fined $9 Million by Korea's Financial Regulators — Market News: Citadel Securities is fined $9 million by South Korea’s financial regulators.

(Reuters) South Korea’s financial regulator has imposed a fine of 11.88 billion won ($9.66 million) on U.S.-based Citadel Securities, saying it disturbed the local stock market with high-frequency algorithm trading.

The Financial Services Commission (FSC) said in a statement released on Thursday the firm had distorted stock prices with artificial factors, such as orders on the condition of “immediate or cancel” and by filling gaps in bid prices.

The firm carried out such trading on an average of 1,422 stocks per day from Oct. 2017 to May 2018, totaling more than 500 billion won worth of trades, according to the statement.

The Commission said it was the first time it had imposed fines on such high-frequency trading on the South Korean stock market, which has a high proportion of retail investors and little competition among algorithmic traders.

It added the firm did not provide algorithm source codes in the consultation process.

The regulator declined to identify the brokerage in violation but Citadel Securities confirmed it had been awaiting a decision, although it had yet to hear directly from the Commission.

“Citadel Securities works diligently to follow all applicable laws, regulations, and rules in jurisdictions in which we trade,” it said in a statement. “We strongly believe our trading complied with both Korean laws and global norms. We disagree with the FSC’s decision relating to our trading activity more than five years ago and will be seeking to appeal the decision.”

Citadel Securities was surprised and concerned to see that the regulator’s findings include references to a number of hearings the firm itself was not invited to participate in and supposed expert evidence that was never shared with the company and that it never had an opportunity to respond to, a source familiar with the situation said.

Citadel High Frequency Trading

CNN: Citadel high frequency trading in action – live.

High frequency trading takes advantage of investors and of the market itself.

One of the biggest manipulations in the market conducted by high frequency trading is spoofing.

Spoofing is a disruptive algorithmic trading practice that involves placing bids to buy or offers to sell futures contracts and canceling the bids or offers prior to the deal’s execution.

In December, Northwest Biotherapeutics sued Citadel Securities for spoofing their company stock.

The company is accused Citadel Securities LLC, Susquehanna, Virtu, and other Wall Street firms of driving its stock price down through the use of various illicit trading activities.

But this isn’t Citadel Securities first rodeo.

The hedge fund is under intense scrutiny from retail investors who say the company has too much power, allowing it to take advantage of retail trades through its payment for order flow and other manipulative tactics.

In 2015, an account operated in China by the brokerage arm of US hedge fund Citadel was suspended.

It was the latest casualty of regulators’ hunt for market manipulators and short sellers at the time.

The China Securities Regulatory Commission said that the Shanghai and Shenzhen stock exchanges had suspended 24 accounts as part of a probe into high-frequency trading.

But Citadel has a long history of market manipulation.

This was only an earlier incident where Citadel and high frequency trading have been an issue in the past.

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Market News Today: Citadel Securities gets fined $9 million by Korea's financial regulators. — *Market News Today:* Citadel Securities gets fined $9 million by Korea’s financial regulators.

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DOJ Attempts to Weed Out Crime with 75% Reduction in Fines

January 27, 2023 / Frank Nez

Market News: DOJ Offers 75% Reduction in Fines to Companies that Admit Crime.

[Bloomberg] The Justice Department will recommend as much as a 75% reduction in fines for companies that voluntarily report wrongdoing to the government and fully cooperate with investigations.

Even companies that don’t voluntarily disclose wrongdoing but still fully cooperate with investigations could still get a 50% reduction off the low end of the guidelines for fines, the head of the department’s criminal division said Tuesday.

“The policy is sending an undeniable message: come forward, cooperate, and remediate,” Assistant Attorney General Kenneth Polite said in a speech at Georgetown University Law Center.

Polite made it clear that cooperators seeking declination will be held to a higher standard than your average or even gold-standard cooperator — the cooperation must be “truly extraordinary.”

The Justice Department will distinguish extraordinary cooperation by assessing the immediacy, consistency, degree, and impact of the cooperation.

Prosecutors will expect companies to cooperate immediately, consistently tell the truth, and hand over evidence that the DOJ otherwise would not be likely to obtain, such as quick access to electronic device images, audio/video recordings, trial testimony, and other kinds of cooperation that “produces results.”

The policy also covers corporations conducting business internationally, as the changes will apply to all corporate matters handled by the Criminal Division, including all Foreign Corrupt Practices Act (FCPA) cases nationwide.

Notably, the new policy is the third in a trilogy of Department of Justice memoranda addressing the prosecution of corporate misconduct and setting forth revised policies concerning the effect of cooperation by companies that have engaged in wrongdoing.

Years of Ongoing Investigations

The new policy was announced to further Deputy Attorney General Lisa Monaco’s October 2021 memorandum directing the creation of a Corporate Crime Advisory Group within the Department to recommend guidance concerning, in part, the nature of a company’s dealings with the government required to receive cooperation credit in resolving company misconduct, and to consider revisions and reforms to the Department’s approach to corporate crime prosecution.

The new policy also follows less than five months after the issuance of a memorandum further clarifying the Department of Justice’s policy against seeking a guilty plea where a corporation has voluntarily self-disclosed, fully cooperated, and timely and properly remediated the conduct at issue in the absence of aggravating factors and directing all department components, including the 93 U.S. Attorney’s Offices across the country, to review its policies on corporate voluntary self-disclosure and ensure it has a publicly available written policy.

At the same time, the September 2022 memorandum emphasized DOJ’s commitment to “strong corporate criminal enforcement.”

Polite likely had these pronouncements in mind as he concluded his speech. He entreated corporations to “come forward, cooperate, and remediate,” and to join the Department of Justice as allies in the fight against crime.¹² But he also warned: “Failing to take these steps, a company runs the risk of increasing its criminal exposure and monetary penalties.”

Related Article: Citadel Under Investigation by DOJ

Source(s): Bloomberg.

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Occupy the SEC 2023 is Here: What’s Happening?

January 27, 2023 / Frank Nez

Occupy SEC 2023: Latest market news - Franknez.com. — Occupy SEC 2023: Latest market news – Franknez.com.

Retail investors are occupying the SEC headquarters in Washington D.C. on January 27th and January 28th from 10am-4pm.

The 28th marks the two-year anniversary of the ‘meme stock’ frenzy of 2021 when Robinhood and other brokerage firms prevented investors from buying more shares of GameStop, AMC, and other heavily shorted stock in order to prevent firms from collapsing.

Regulators interfered with the people’s money by suppressing shares from rising.

Majority of investors within these communities never left, but rather hoped for justice and change in the financial system.

Retail investors have raised the issues of dark pools, OTC trading, and a number of conflicts of interest that pin regular investors to the ground.

Discussions surfaced in 2022 of protesting several SEC locations in the U.S. but never came to fruition.

Some retail investors argued against these actions while many more said they are necessary to get their voices heard.

Here’s what’s happening in the retail community today.

What is Occupy SEC 2023?

The objective of occupying the SEC is to demand changes in the financial markets and to protect retail investors and companies from naked short selling and short selling misconduct.

The nationwide protests will occur on January 27th and January 28th between 10am and 4PM at 12 SEC locations, including the SEC headquarters in Washington D.C.

Outrage filled the retail community when SEC Chairman Gary Gensler confirmed 90%-95% of retail orders are processed in off-exchange platforms where the true demand for retail orders is not being reflected on the lit New York Stock Exchange.

The Wall Street ‘watch dogs’ turned a blind eye to the Madoff events that occurred during the last decade and now they’ve turned a blind eye to naked short selling and several conflicts of interest happening today within the media, hedge funds, and even regulators.

Retail investors are saying ‘we know’ what’s happening and ‘we need you to take care of it now’.

Occupy the SEC 2023 are meant to be peaceful protests.

Communities are tired of their investments in their favorite companies plummeting all because they’ve become targets of aggressive short sellers and manipulative tactics from Wall Street.

Now they’re taking the word to the streets despite gaining much attention on social media.

The lack of market transparency since the events that occurred in January of 2021 have led to these protests.

Occupy SEC 2023 LIVE

You can watch Occupy the SEC 2023 LIVE here.

Retail investors chant “do your job” when referring to the inaction from the SEC.

What is Stopping the SEC from Taking Action?

SEC Chairman Gary Gensler told ‘We The Investors’ he understands retail’s frustrations.

But retail investors aren’t convinced.

The SEC Chairman says that short selling is a challenging area where the SEC is still working and pursuing focus on.

One of the biggest challenges according to Chairman Gensler is that Wall Street powers will send stacks of reports highlighting rebuttals on proposals aimed towards protecting retail investors.

This is primarily because certain proposals aimed to protect retail investors conflict with Wall Street money.

And because these firms are market participants, like retail investors, these documents must be legally reviewed.

The challenge only grows when Wall Street firms open lawsuits against the SEC when certain proposals become a direct hinderance to the way these companies perform.

Regulators are in a massive bind now, facing scrutiny from both Wall Street and the average investor.

FINRA, DTCC Under Retail Scrutiny

FINRA has received backlash after freezing the trading of MMTLP (Meta Materials) prior to its spinoff.

The self-regulated organization is also responsible for outsourcing ‘best execution’ with the best execution rule, according to SEC Chairman Gary Gensler.

This means FINRA has the power to execute orders in off-exchange and dark markets for ‘best execution’ and ‘price discovery’.

But Gary Gensler says that this rule is too important for it to not be in the SEC’s court.

The organization contains records of every trade made available intraday, including that of naked short sales.

FINRA requires firms to be able to meet their short sale requirements as well as have a process to close out fails to deliver within their required timeframes.

However, they’re the open window that allows these manipulative strategies to occur in the market.

FTDS (fails-to-deliver) are mounting up every month according to SEC data, and FINRA is unable to get firms to close out these obligations.

FINRA’s justification towards FTDs say that firms face challenges related to miscalculations.

But Chairman Gensler says this is too important for it to not be handled directly by he and his team.

DTCC Conflicts of Interest

David Inggs is Global Head of Operations at Citadel and is responsible for all products across asset servicing, billing, cash management, clearing, and has a board seat at the DTCC.

The conflict of interest has raised big concerns amongst the retail investor community online as Citadel has been a leading and one of the biggest short sellers in the stock market.

On January 28th, 2021, The DTCC waived $9.7 billion of collateral deposit, limiting institutional losses and limiting retail profits during the ‘meme stock’ frenzy.

The organization allowed several naked shares to flood the market prior to the massive jump in share prices only to help financial institutions in the end.

SEC Chairman Gary Gensler has said one proposal they’re looking at this year involves tackling conflicts of interest in the financial markets.

How can investors support the cause?

Retail investors have been supporting the cause for years now by distributing news and information that sheds light on real issues.

Franknez.com is a media blog that supports retail investors and protects the retail community from mainstream media propaganda.

You can raise awareness in your community by sharing this article, and others, or by using hashtag #OccupySEC2023 on social media.

Advisory: This article is intended for educational and informational purposes only. This article is not advocating violence of any kind during these peaceful rallies.

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Global Head of Operations at Citadel Has a Board Seat at DTCC

January 23, 2023 / Frank Nez

Market News: Conflicts of interest arise - #CitadelScandal — Market News: Conflicts of interest arise – #CitadelScandal

David Inggs is Global Head of Operations at Citadel and is responsible for all products across asset servicing, billing, cash management, clearing, and has a board seat at the DTCC.

The conflict of interest has raised big concerns amongst the retail investor community online as Citadel has been a leading and one of the biggest short sellers in the stock market.

On January 28th, 2021, The DTCC waived $9.7 billion of collateral deposit, limiting institutional losses and limiting retail profits during the ‘meme stock’ frenzy.

The organization allowed several naked shares to flood the market prior to the massive jump in share prices only to help financial institutions in the end.

Citadel and Melvin Capital who shut down last year, lost billions during the event.

Melvin was crippled throughout 2022 from its severe losses in GameStop the year prior.

Had the DTCC not stepped in, the hedge fund would have closed that same year.

“Anyone shorting AMC or GameStop is out of their mind. Wallstreetbets is too powerful, and trying to bet against them right now is just giving them more ammo”, said Jim Cramer.

Since the halt of ‘meme stocks’, the retail community has been uncovering a variety of conflicts of interest too big to ignore.

Who is David Inggs?

David Inggs is Global Head of Operations at Citadel and is responsible for all products across asset servicing, billing, cash management, clearing, Collateral Management, Reconciliation & Control and Settlements and is on the Board of Directors at the DTCC.

Prior to joining Citadel, David served as Chief Operations Officer of E*TRADE where he led operations globally across Trade Execution, Global Clearing, Middle Office and Shared Services, among other functions.

David spent most of his career at Goldman Sachs, where he was a Managing Director and held numerous leadership positions over the course of a decade, including Global Head of Clearing Operations and Head of Credit Default Swaps and Equity Derivative Operations.

David also worked at Morgan Stanley, where he served as an Executive Director and Head of Global Bank Loans, in addition to work in credit derivatives and collateral management.

The Global Head of Operations at Citadel has worked for every major criminal financial institution that has been too big to face serious consequences from fraud or market manipulation in the past.

Retail investors say this is market injustice and regulators are part of the problem.

Who is the DTCC?

The DTCC (Depositary Trust and Clearing Corporation) is an American post-trade financial services company providing clearing and settlement services to the financial markets.

The DTCC processes trillions of dollars of securities on a daily basis.

As the centralized clearinghouse for various exchanges and equity platforms, the DTCC settles transactions between buyers and sellers of securities.

The information is recorded by its subsidiary, the NSCC.

After the NSCC has processed and recorded a trade, they provide a report to the brokers and financial professionals involved.

This report includes their net securities positions after the trade and the money that is due to be settled between the two parties.

Clearing corporations such as the DTCC may receive cash from a buyer and securities or futures contracts from a seller.

The clearing corporation then manages the exchange and collects a fee for this service.

The size of the fee is dependent on the size of the transaction, the level of service required, and the type of security being traded.

Investors who make several transactions in a day can generate significant fees.

This means every naked share that has been created on the ‘short side’ has been recorded and bypassed by the DTCC/NSCC, all for a fee.

GameStopped

A press released was published advising of the circumstances that occurred during the time ‘meme stocks’ were halted.

The DTCC waived $9.7 billion of collateral deposit requirement on January 28th, 2021, limiting institutional losses and limiting retail profits.

While AMC Entertainment stock was able to surge months after the January event, GameStop shareholders were strongly affected by the halts.

Retail investors say they feel cheated from regulators who failed to let the short squeeze play out in their favor.

Conflicts of interest such as David Inggs’ involvement with Citadel and the DTCC could be seen as a detriment to market integrity.

In an interview with ‘We The Investors’, SEC Chairman Gary Gensler said one proposal they’re looking at this year involves tackling conflicts of interest in the financial markets.

Citadel processes more than 40% of retail’s orders through PFOF (payment for order flow), and with a bias towards short selling, gives the hedge fund an incredible advantage over the common investor.

Should the involvement between both Citadel and the DTCC be considered a crime?

Or is this just a coincidence?

Leave your thoughts below.

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The Fed is Currently Investigating Goldman Sachs

January 20, 2023 / Frank Nez

Market News: The Fed launches an investigation into Goldman Sachs. — The Fed launches an investigation into Goldman Sachs | Goldman Sachs under investigation.

The U.S. Federal Reserve is probing whether Goldman Sachs Group Inc’s consumer business had appropriate safeguards in place as the bank ramped up lending, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Shares of the investment bank were down nearly 3% at $341.08 in afternoon trade.

The central bank is concerned the Wall Street giant did not have proper monitoring and control systems inside Marcus, its consumer unit, as it grew larger, the report said.

The probe, which grew out of a standard Fed review of the business in 2021 and intensified into an investigation last year, is also examining instances of customer harm and whether they were properly resolved, the report added.

“The Federal Reserve is our primary federal bank regulator and we do not comment on the accuracy or inaccuracy of matters relating to discussions with them,” a Goldman spokesperson told Reuters.

Bloomberg News reported in September that the bank’s Marcus unit was facing a Fed review.

The probe would add to troubles for Goldman, which is executing a strategic pivot that includes refocusing on its core trading and investment banking business after losing money in its consumer banking venture.

“Another investigation into the consumer business makes Goldman’s foray into consumer look even worse, and can reduce management credibility, particularly given so many statements about GS’ ability to manage risk and build best-in-class platforms,” said Mike Mayo, banking analyst at Wells Fargo, in a note.

“The investigation, along with poor disclosure and other regulatory investigations, will increase the risk associated with owning GS and its cost of capital.”

Goldman’s credit card business is also being investigated by the Consumer Financial Protection Bureau (CFPB), the bank disclosed last year.

Source(s): Reuters.

Hedge Fund Investigations: Citadel Securities

Fed investigates Goldman Sachs, Citadel, and others in 2022 sweep.

Bloomberg confirmed in 2022 that Citadel Securities was one of the hedge funds under investigation by the Department of Justice.

Regulators took Morgan Stanely and several other hedge funds to court after several subpoenas were sent out earlier in the year.

pic.twitter.com/p42YVeY6wz
— Mitch Kerbel (@mitchkerbel) February 18, 2022

Predatorial short selling strategies were exposed by the AMC and GME stock communities after the ‘meme stock’ frenzy fiasco in 2021.

Both these stocks’ share prices have been suppressed by dark pool trading, naked short selling, spoofing, and through OTC trading.

The hedge fund was being investigated after subpoenas were sent to numerous hedge funds and banks who might be connected.

Morgan Stanley and Goldman Sachs are two of the banks that were also ordered to court.

Among Citadel is a hedge fund by the name of Element according to the Bloomberg report.

Also Read: Citadel’s Ken Griffin Sues IRS for Leaking Financial Data

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Citadel’s Ken Griffin Sues IRS for Leaking Financial Data

January 19, 2023 / Frank Nez

Market News: Citadel's Ken Griffin sues IRS. — Market News: Citadel’s Ken Griffin sues IRS.

[Bloomberg] Billionaire hedge fund manager Ken Griffin sued the US Internal Revenue Service, claiming it failed to protect his confidential financial information.

The Citadel founder is seeking financial damages over a data breach that resulted in ProPublica’s publication of information on a number of the wealthiest people in the US. He accused the IRS of “willful and intentional failure to establish appropriate administrative, technical, and/or physical safeguards.”

The lawsuit, filed Tuesday in federal court in Florida, also names as a defendant the US Treasury Department, which includes the IRS.

The IRS didn’t respond to a request for comment on the suit, per Bloomberg reports.

“IRS employees deliberately stole the confidential tax returns of several hundred successful American business leaders,” Griffin said in a statement in response to a request for comment.

“It is unacceptable that government officials have failed to thoroughly investigate this unlawful theft of confidential and personal information. Americans expect our government to uphold the laws of our nation when it comes to our private and personal information — whether it be tax returns or health care records.”

Ken Griffin Net Worth

Republicans, who won control of the House of Representatives in last month’s election, have pledged to use their newfound power to investigate the breach and the IRS response.

Government officials who have expressed concern about the leak include Treasury Secretary Janet Yellen, who referred to it as “criminal activity” and vowed to work with federal investigators to find the source.

The ProPublica report said billionaires including Jeff Bezos and Elon Musk had in some years paid minimal or no income tax even as their fortunes soared.

It outlined the tax strategies available to the top 0.1%.

Ken Griffin reported an average annual income of almost $1.7 billion between 2013 and 2018 and paid an average federal tax rate of 29.2% during that time, ProPublica reported.

Griffin, 54, has a net worth of $29 billion, according to the Bloomberg Billionaires Index.

Michael Bloomberg, majority owner of Bloomberg News parent Bloomberg LP, was also among those included in the reporting.

Ken Griffin Lawsuit 2023

In his lawsuit, Griffin says he requested that the IRS and Treasury demand ProPublica return or destroy confidential IRS data and provide him with information about the disclosure of his tax data, and hasn’t seen “any meaningful response.”

He asked the court to order the defendants to produce documents related to the disclosure of his tax information, as well as for the monetary damages.

Ken Griffin Sues IRS — Ken Griffin sues IRS news, Source: Document.

The case is Griffin v. Internal Revenue Service, 22-cv-24023, US District Court, Southern District of Florida.

Source(s): Bloomberg.

Curated by Frank Nez.

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Robinhood and Citadel Colluded Night Before Trading Restrictions

January 15, 2023 / Frank Nez

The U.S. House Committee on Financial Services just published a press release stating Robinhood and Citadel Securities engaged in ‘blunt’ negotiations before the trading of ‘meme stocks’ occurred.

The press release states that talks regarding lowering PFOF (payment for order flow) rates happened just a night before trading restrictions.

Robinhood and Citadel GameStopped Report — GameStopped Report Notes

The “GameStopped” report issued by the U.S. House Committee on Financial Services greatly details how the NSCC saved Robinhood from defaulting due to failing to meet collateral obligations.

This article is going to highlight key points relating to the ‘meme stock’ halts that occurred in late January of 2021.

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Let’s dive right into it.

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GameStopped Report – U.S. House Committee on Financial Services

The GameStopped report highlights Robinhood’s lack of liquidity, conversations between Citadel and Robinhood, and the process leading to the halting of ‘meme stocks’ such as AMC and GameStop.

On January 28th, 2021, Robinhood routed orders to six market makers for equities: Citadel Securities, G1 Execution Services, Morgan Stanley, Two Sigma Securities, Virtu, and Wolverine.

Citadel, Morgan Stanley, and Wolverine are short on AMC to this day.

The conversations between Robinhood and Citadel were tense as the two negotiated the price of PFOF rebate rates and price caps for AMC and GameStop.

Furthermore, Robinhood received a massive waiver of its deposit requirement from the DTCC.

And according to the report, without this waiver, Robinhood would have defaulted on its regulatory collateral obligations.

NSCC officials say the waiver was necessary to avoid systemic risk to the market.

They explained that the extraordinary spike in ‘meme stocks’ contributed to increased clearing fund requirements for several firms.

Trading Restrictions Chart - GameStopped — Trading Restrictions Chart – GameStopped

Brokers halted the buying of AMC, GameStop, and other tickers when short sellers began to close their short positions, causing share prices to skyrocket.

The halting occurred due to a lack of liquidity where certain brokers were unable to cover the minimum collateral requirements.

The DTCC waived a total of $9.7 billion of collateral deposit requirements on January 28, 2021.

Global Head of Operations at Citadel Has a Board Seat at DTCC

David Inggs is Global Head of Operations at Citadel and is responsible for all products across asset servicing, billing, cash management, clearing, and has a board seat at the DTCC.

The conflict of interest has raised big concerns amongst the retail investor community online as Citadel has been a leading and one of the biggest short sellers in the stock market.

On January 28th, 2021, The DTCC waived $9.7 billion of collateral deposit, limiting institutional losses and limiting retail profits during the ‘meme stock’ frenzy.

The organization allowed several naked shares to flood the market prior to the massive jump in share prices only to help financial institutions in the end.

Citadel and Melvin Capital who shut down last year, lost billions during the event.

Melvin was crippled throughout 2022 from its severe losses in GameStop the year prior.

Had the DTCC not stepped in, the hedge fund would have closed that same year.

Retail Feels Cheated

GameStop - GameStopped — Robinhood and Citadel colluded prior to restrictions

Retail investors feel they were robbed when brokers took away the ‘buy’ button by restricting trading in AMC, GameStop, and other ‘meme stocks’.

The DTCC jumped in and saved Robinhood from defaulting, cut Citadel’s losses short, and prevented retail investors bets from reaching maximum potential.

No one has been held accountable for these actions primarily because the system is justifying the actions as saving the market from total collapse.

But the system stole from retail investors to save institutional investors.

Regulators intervened to save institutions while they capped retail investor gains.

Still, hedge funds lost billions of dollars during the process.

GameStop broke Melvin Capital.

The hedge fund was not able to recover from its massive losses and has now shut down.

But Citadel nor Robinhood have faced any severe consequences that money can’t buy them out from.

Retail investors are now looking at our government and regulators as complicit to fraud and market manipulation.

You can view the full detailed report here.

What are your thoughts on the incidents that occurred during this time?

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How Bloomberg’s Beloved Citadel Securities Manipulates the Market

January 9, 2023 / Frank Nez

Market News: Here's how Bloomberg's beloved Citadel Securities manipulates the stock market. — Market News: Here’s how Bloomberg’s beloved Citadel Securities manipulates the stock market.

Citadel Securities is a leading financial institution known for its expertise in electronic trading and market making.

However, the company has also been embroiled in controversy surrounding allegations of manipulation in the markets.

In this article, we will explore the history of Citadel Securities and the accusations of market manipulation that have been levied against the company.

We will also examine the potential consequences of such behavior, both for Citadel Securities and for the broader financial industry.

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How Does Citadel Securities Manipulate the Stock Market?

Citadel LLC was founded in 1990 while Citadel Securities was founded in 2002 by Ken Griffin.

Citadel Securities is a leading global market maker that provides liquidity to financial markets.

The company is known for its use of advanced technology and quantitative strategies to facilitate price discovery and drive market efficiency.

However, Citadel Securities has also been accused of manipulating financial markets in order to gain an unfair advantage.

Here are 5 ways Citadel Securities manipulates the stock market.

#1. High Frequency Trading (HFT)

One example of Citadel Securities’ alleged market manipulation is its use of high-frequency trading (HFT) algorithms.

HFT algorithms are designed to execute trades at extremely high speeds, often in fractions of a second.

This allows Citadel Securities to react to market movements faster than other traders and potentially gain an unfair advantage.

Critics argue that the use of HFT algorithms allows Citadel Securities to manipulate prices by quickly buying or selling large volumes of securities, which can create artificial demand or supply and move prices in their favor.

#2. Dark Pools

Another area where Citadel Securities has faced accusations of manipulation is in the realm of dark pools.

Dark pools are private stock exchanges that allow traders to buy and sell securities without revealing their identities or the details of their trades.

This can create a lack of transparency, making it difficult for regulators to monitor market activity and prevent manipulation.

Citadel Securities operates a number of dark pools and has been accused of using these platforms to engage in insider trading and other forms of market manipulation.

In addition to its use of HFT algorithms and dark pools, Citadel Securities has also been criticized for its role in the flash crash of 2010.

On May 6, 2010, the Dow Jones Industrial Average plunged nearly 1,000 points in a matter of minutes, before quickly recovering.

The cause of the flash crash was traced to a large sell order that was executed by Citadel Securities, which many believe was done intentionally to trigger a market panic.

Critics argue that Citadel Securities exploited the vulnerabilities of the market in order to profit from the flash crash.

#3. Spoofing

Another tactic that Citadel has been accused of using is spoofing, which involves placing a large number of fake orders in the market with the intention of tricking other traders into thinking there is more demand or supply than there actually is.

This can cause prices to move in the desired direction, allowing Citadel to profit from the manipulation.

In 2015, Citadel was one of several firms that were fined by the U.S. Commodity Futures Trading Commission for engaging in spoofing.

In December of 2022, a Biotech company researching cancer has decided to sue Citadel Securities for spoofing their stock.

#4. “Front Running”

Citadel has also been accused of engaging in “front-running” – a practice in which traders use inside information to gain an unfair advantage in the market.

In 2013, the company was sued by the New York Attorney General for front-running, but the case was later settled out of court.

Despite these controversies, Citadel remains a major player in the financial world.

Its use of algorithms and high-frequency trading has made it incredibly successful, but it has also raised concerns about the potential for market manipulation.

One of the key reasons for Citadel’s success is its ability to manipulate the markets to its advantage.

This is done through a variety of strategies, including high-frequency trading, where the firm uses powerful computer algorithms to make trades at incredibly fast speeds.

This allows Citadel to take advantage of even the slightest market movements and make a profit.

#5. Derivatives

Another way in which Citadel manipulates the markets is through the use of complex financial instruments known as derivatives.

These are financial contracts that derive their value from an underlying asset, such as a stock or a bond.

Citadel uses derivatives to speculate on the future value of these assets, and to hedge against potential losses.

This allows the firm to make huge profits even in volatile market conditions.

Despite its impressive track record and reputation, Citadel Securities has faced allegations of manipulation in recent years.

In particular, the company has been accused of using its dominant market position to manipulate prices and engage in other forms of misconduct.

These allegations have led to significant scrutiny from regulators, authorities, but primarily by retail investors who are concerned about the impact of such practices on the integrity of financial markets.

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Ken Griffin’s Ties to News Corp Is a Big Problem

December 13, 2022 / Frank Nez

Ken Griffin News Corp — Market News: Ken Griffin’s Ties with News Corp leads to conflicts of interest.

Ken Griffin is a well-known billionaire hedge fund manager and the founder of Citadel LLC, one of the largest and most successful hedge funds in the world.

In recent years, Griffin has been involved in a conflict of interest with media conglomerate News Corp, specifically with regard to his relationship with the company’s CEO, Rupert Murdoch.

The conflict began in 2017, when Griffin became a member of the board of directors for News Corp, despite having a significant financial stake in the company through his hedge fund.

This raised concerns among some that Griffin’s position on the board could be used to further his own financial interests, rather than those of the company and its shareholders.

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What is News Corp?

News Corp is a global media and entertainment company that is known for its diverse portfolio of news and information services.

The company was founded by media mogul Rupert Murdoch in 1979 and has since grown to become a major player in the media industry.

News Corp operates a number of well-known brands, including the Wall Street Journal, the New York Post, the Times of London, Dow Jones Newswire, MarketWatch, and Barron’s.

In addition to its news and information services, the company also owns a number of entertainment properties, such as Fox News, Fox Sports, and the 20th Century Fox film studio.

Despite its success, News Corp has faced a number of challenges in recent years.

The company has been criticized for its political leanings and its coverage of certain events and has faced allegations of unethical behavior and corporate misconduct.

However, News Corp has continued to invest in its brands and expand its operations, positioning itself as a major player in the global media industry.

Conflicts of Interest with The Media

In addition to his wife serving on the board, Ken Griffin has also been a vocal supporter of Murdoch and his leadership of News Corp.

In 2018, he publicly praised Murdoch’s “exceptional leadership” and defended the company against criticism from other investors.

This support has led some to question whether Griffin’s actions on the board are influenced by his personal relationship with Murdoch, rather than a genuine desire to act in the best interests of the company.

Furthermore, there have been reports that Griffin has used his position on the board to push for changes at News Corp that would benefit his own financial interests.

The conflict of interest between Griffin’s now ex-wife and News Corp has raised concerns among some investors and corporate governance experts.

They argue that Griffin’s (dual role) as a board member (ex-wife) and significant shareholder creates a clear conflict of interest, and that actions on the board may not be in the best interests of the company and its shareholders.

One potential solution to this problem would be for Griffin to divest his stake in News Corp and for his now ex-wife to resign from the board.

This would eliminate the potential for conflicts of interest and ensure that Griffin’s actions are aligned with the interests of the company and its shareholders.

The conflict of interest between Ken Griffin and News Corp is a serious concern that raises questions about the integrity of the company’s leadership and governance.

The Latest on News Corp.

News Corp is a global media conglomerate that owns a wide range of news and entertainment companies, including Fox News, the Wall Street Journal, and the New York Post.

Despite its vast reach, News Corp has faced criticism for conflicts of interest that arise from its ownership of both news outlets and the companies and individuals they report on.

An example of a News Corp conflict of interest is its ownership of the Wall Street Journal, which has been criticized for its close ties to the financial industry.

This has led to accusations that the Journal’s coverage of the financial sector is biased in favor of Wall Street interests.

Furthermore, News Corp’s ownership of the New York Post has also been criticized for its lack of journalistic integrity.

The Post has been known to publish sensational headlines and stories that are often lacking in factual accuracy.

Overall, News Corp’s conflicts of interest have raised concerns about the company’s ability to provide objective and unbiased news coverage.

This is particularly important in today’s media landscape, where trust in the media is already low and the line between news and entertainment is increasingly blurred.

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These Hedge Funds Have Been Wiped Out in 2022

December 7, 2022 / Frank Nez

Market News: These Hedge Funds have been underperforming all year | Frankenz.com.

Which hedge funds have been underperforming in 2022?

Hedge fund Tiger Global Management is down -54% for the year despite gaining 1.4% in November according to Bloomberg sources.

Persons familiar with the matter say the firm’s long-only fund rose 5.1% in November.

The hedge fund has been on a steady decline all year.

In April, the firm sunk -34% after a bad run that was fueled by massive bets on stocks that have been hammered, such as fast-growing tech companies in the U.S and China.

Tiger Global lost -7% last year, its first annual drop since 2016 and its third total.

Tiger Global Losses 2007-2021 | Sources: Bloomberg News, Curated by Franknez.com. — Tiger Global Losses 2007-2021 | List of Underperforming Hedge Funds – Sources: Bloomberg News, Curated by Franknez.com.

CEO Chase Coleman’s personal wealth dropped by $1.3 billion early this year, according to calculations by the Bloomberg Billionaires Index.

But Tiger Global isn’t the only hedge fund that is underperforming in 2022.

Here are other hedge funds facing significant losses in 2022.

Which hedge funds have been losing money this year?

List of worst performing hedge funds in 2022 | Franknez.com. — List of worst performing hedge funds in 2022 – Underperforming Hedge Funds | Franknez.com.

Tiger Global Management and Whale Rock Capital Management were among stock-picking hedge funds to report significant losses in 2022.

In September, Tiger Global saw losses as high as -66.5%, per Bloomberg.

Whale Rock widened its losses to -41%.

A report conducted in March concluded that almost 80% of active hedge fund managers are underperforming major indexes such as the S&P 500.

Which hedge funds have been underperforming?

Below is a list of other hedge funds underperforming in 2022.

Other hedge funds include:

Light Street Capital Management -50%
Maverick Capital -27%
Third Point -21.10%

Melvin Capital closed its doors in June of 2022 after it failed to make up for significant losses after it had bet against GameStop.

Anchorage Capital is another hedge fund that closed after betting against another ‘meme stock’, AMC Entertainment Holdings, Inc.

It closed its doors after 18 years when it could no longer provide their clients with the ability to withdraw their capital.

“Hedge funds are heading for one of their worst years of performance on record, leaving investors frustrated with how many managers have failed to offset sharp falls in equity and bond markets,” says Financial Times.

It’s only a matter of time before we begin to see more hedge funds close their doors leading into 2023.

But I’d love to hear your thoughts.

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How Does Citadel Securities Manipulate the Stock Market?

#1. High Frequency Trading (HFT)

#2. Dark Pools

#3. Spoofing

#4. “Front Running”

#5. Derivatives

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