Tag: Citadel Securities (Page 1 of 12)

BBIG Investors Now Take On Toxic Lenders in New Lawsuit

BBIG investors now take on toxic lenders in a new lawsuit which seeks rescissionary damages in excess of $250 million.

This action is led by Shadwrick Vick on behalf of VINCO shareholders.

The lawsuit alleges that Hudson Bay Master Fund Ltd., Sander R. Gerber, Yoav Roth, BHP Capital NY, Inc., and Bryan Pantofel, have engaged in “predatory lending practices in violation of federal securities law,” according to a new press release.

The lawsuit was filed in the United States District Court for the Southern District of New York and accuses the defendants of violating Section 15(a) of the Securities Exchange Act of 1934 by failing to register as “dealers,” despite engaging of the practice of buying and selling securities for their own benefit.

“Defendants practices are demonstrated by the fact that they have made similar unlawful, predatory loans to publicly traded companies, including VINCO, that caused the issuance of millions, if not billions, of newly-issued shares to the to the company and its shareholders,” the press release states.

Mark Basile’s The Basile Law Firm P.C. has helped lead several retail cases involving fraud, including that of Vinco Ventures.

“One problem with our markets are the unregistered broker-dealers issuing toxic funding to all to willing over-paid executives who forget their fiduciary duty to the company & stake holders,” says @MemeStockMillyz on X.

“BBIG shareholders are making headway in fighting for justice. I’ve personally been financially devastated by bad actors,” says another user.

This is a developing story — for more market news and updates like this, follow me on Twitter or join the popup newsletter.

Also Read: Missing MMTLP Certificates Now Back Up Possibility of Illegal Trading

Other Market News Today

Market News Today - BBIG Investors Now Take On Toxic Lenders in New Lawsuit.
Market News Today – BBIG Investors Now Take On Toxic Lenders in New Lawsuit.

South Korea now speaks on the impact of illegal short selling after the illicit practice accounted for 20% of daily transactions.

Financial watchdogs have vowed to continue rooting out the malpractice in the markets.

“The FSS found that the violation rate exceeded 20% in some cases, which suggests that illegal transactions have a big impact on a certain stock,” the financial regulator said in a statement late Tuesday.

“It’s necessary to consider the impact of illegal short sales on an individual stock as such trades hinder fair pricing and increase short-term volatility,” it said.

Bloomberg reports the South Korea’s financial watchdogs derived the 20% figure by dividing the amount of violated orders on a certain stock by its daily trading value.

The FSS did not identify the equities that saw illegal trades and declined to say how frequently the trades exceeded that ratio.

In November, South Korea imposed a ban on short selling through mid-2024, a decision that drew big celebration from retail investors in the country.

Professional investors on the other hand are skeptical, seeing the move as being politically motivated ahead of the election.

Financial authorities have defended the decision, describing illegal trades such as naked short selling — an act of selling shares without borrowing them first — as “rampant” and hurting fairness in the market, reports Bloomberg.

Furthermore, Bloomberg reported on Monday that investigators have turned up just 110 billion won worth ($83 million) of alleged naked short selling by four global investment banks.

In the U.S., naked short selling continues to be a big problem.

Citadel Securities is currently under heavy scrutiny for marking short sales as long sales over a period of five years.

Investors in the AMC, MULN, GTII, FNGR, and MMTLP communities are just a few of many who have been raising awareness of the malpractice happening in the U.S stock market.

Also Read: SEC Commissioner Now Says Securities Lending Facilitates Illegal Trading

Market News Published Daily 📰

Market News Today - BBIG Investors Now Take On Toxic Lenders in New Lawsuit.
Market News Today – BBIG Investors Now Take On Toxic Lenders in New Lawsuit.

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This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

Scroll below to view my stock purchases this month!

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Frank Nez’s Stock Portfolio

Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?

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11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.



Ken Griffin Now Makes Surprising Claims Confirming Illegal Manipulation

Ken Griffin now makes surprising claims confirming the illegal manipulation that retail investors have been raising awareness about for years.

“Markets are efficient because of active managers setting the prices of securities,” says Citadel Securities’ Ken Griffin.

This prompts the big question, does supply and demand matter? And is it even real?

For years now, retail investors have alleged that market makers and hedge funds have the full control of where prices go.

Dark pools have allowed institutions to keep a big percentage of retail money from displaying in the lit market.

Naked shorts have allowed institutions to suppress the buying pressure of a stock, driving prices down.

And the media, unfortunately doesn’t report this.

“Firms like Citadel, firms like Fidelity, firms like Viking Global, Capital Research, we’re all running large teams of people that are engaged in fundamental research trying to drive the value of companies towards where we think they should be valued,” says Griffin.

If market makers and hedge funds have the ability to decide what the stock price of a company should be, then this annihilates the market’s integrity when hedge funds such as Citadel have a dark history of market manipulation.

In September, Citadel was charged for illegal short selling violations by the SEC after incorrectly marking short sales as long sales for the duration of five years.

“Compliance with the order marking requirements of Reg SHO is a key component of regulatory efforts to curtail abusive market practices, including ‘naked’ short selling,” said Mark Cave, Associate Director of the SEC’s Division of Enforcement.

“This action against Citadel Securities demonstrates that a broker-dealer’s failure to comply with the requirements of Reg SHO can have negative downstream consequences on the accuracy of the firm’s electronic records, including its electronic blue sheet reporting, depriving the Commission of important information about the markets it regulates.”

Should firms, such as Citadel, have total control of pricing the market?

Or is this is a direct violation of the laws of supply and demand?

Leave your thoughts below — share this article on X.

Also Read: “The Game is Rigged”, Says Ex-Citadel Data Scientist

Other Market News Today

Market News Today - Ken Griffin Now Makes Surprising Claims Confirming Illegal Manipulation.
Market News Today – Ken Griffin Now Makes Surprising Claims Confirming Illegal Manipulation.

SEC Chair Gary Gensler now takes an unexpected stance against hedge funds in his latest interview with CNBC.

The Chairman, who’s been heavily criticized by retail investors for failing to create real change in the market, is making it clear on just how important short selling transparency truly is.

For years now, the hedge fund industry has been fighting against the SEC’s new rules which would require more disclosure of short sale transactions, Citadel Securities included.

The SEC approved new rules in October related to short selling.

The first rule required certain fund managers to report their short sales to the SEC within 14 days at the end of the month.

The second rule requires that financial companies that facilitate securities loans disclose information about those transactions to FINRA on a daily basis.

“Remember the events around GameStop nearly three years ago?” Gensler said.

“We have a lot of transparency in the long side, let’s add transparency to the short side that Congress mandated.”

SEC Commissioner Jaime Lizarraga stated in October that securities lending facilitates illegal trading.

“As with securities lending, short sales, provided they are conducted in compliance with applicable rules, can play a valuable price discovery role in our capital markets.

That said, they can sometimes contribute to, or even cause, precipitous price declines, facilitate market manipulation, and generate market uncertainty and volatility”, the Commissioner said.

Now Gary Gensler is pushing short sale transparency.

“Congress weighed in after the financial crisis and mandated that the SEC address and have rules for transparency around short selling for investment managers,” he said in an interview with CNBC on Thursday.

“I got to the agency nine years later and the agency had not done a congressional mandate. I’m very proud we took it up.”

This is a developing story.

Also Read: South Korea Regulators Now Probe Into Illegal Short Selling

Market News Published Daily 📰

Market News Today - Ken Griffin Now Makes Surprising Claims Confirming Illegal Manipulation.
Market News Today – Ken Griffin Now Makes Surprising Claims Confirming Illegal Manipulation.

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors.

This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

Scroll below to view my stock purchases this month!

You can also follow me on X (Twitter)InstagramFacebook, or LinkedIn for daily news and updates on your favorite stories.


Frank Nez’s Stock Portfolio

Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?

Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.

11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.



South Korea Regulators Now Probe Into Illegal Short Selling

South Korea regulators now probe into illegal short selling trades by global investment banks in efforts to root out manipulation.

Banks that have conducted short-selling trades most frequently in South Korea will be subject to the investigation that would start in November.

The regulator said it will collaborate with watchdogs in Hong Kong and Singapore for its probe, per BusinessTimes.

The FSS will “hold those responsible” and ensure “naked short selling practices don’t take hold,” the statement said.

Naked short-selling refers to the practice of selling shares that an investor doesn’t own and hasn’t borrowed.

The agency will look into all short-selling transactions since May 2021 when the country partially lifted a ban that was imposed during the pandemic.

The watchdog will also review the short-selling consignment order processes of Korean brokerages to establish if they were aware of illegal naked short selling by global investment banks.

A special 20-person investigation team will be launched on Nov 6, the FSS added.

Public perception of such trading practices in the Asian nation remains deeply negative, with local retail traders staging protests against these activities from time to time.

In the United States, naked short selling continues to be a big problem.

In September, Citadel Securities was charged for illegal short selling violations by the SEC.

According to the SEC’s order, for a five-year period, it is estimated that Citadel Securities incorrectly marked millions of orders, inaccurately denoting that certain short sales were long sales and vice versa.

“Compliance with the order marking requirements of Reg SHO is a key component of regulatory efforts to curtail abusive market practices, including ‘naked’ short selling,” said Mark Cave, Associate Director of the SEC’s Division of Enforcement.

Also Read: “The Game is Rigged”, Says Ex-Citadel Data Scientist

Citadel Is Now Suing The SEC Over New Transparency Rule

Market News Today - South Korea Regulators Now Probe Into Illegal Short Selling.
Market News Today – South Korea Regulators Now Probe Into Illegal Short Selling.

Ken Griffin’s Citadel Securities is now suing the SEC over its new market transparency rules meant to keep institutions under tighter surveillance.

Citadel Securities and the American Securities Association, a trade group, announced on Tuesday that they are suing Wall Street’s top regulator over new rules on the funding of a comprehensive market data surveillance system.

The litigation, brought before the U.S. Court of Appeals for the 11th Circuit in Atlanta, escalates the investment industry’s battle with the U.S. Securities and Exchange Commission over the so-called Consolidated Audit Trail (CAT),” reports Reuters.

The ASA says that the SEC has “overstepped its statutory authority” and “failed to address investor and industry concerns” leaving them with no choice but to litigate.

“The Commission undertakes its regulatory responsibilities consistent with its authorities,” an SEC spokesperson said.

“The CAT is a repository of investor and transaction data meant to give regulators all-encompassing insight into U.S. market transactions.

The SEC mandated the CAT’s creation in 2012 as a response to the “flash crash” two years earlier, when a sudden plunge on major Wall Street indices temporarily erased nearly $1 trillion in market value.

Republican officials and industry representatives have said the system presents cybersecurity and privacy risks and is likely to pass undue costs on to investors.”

The Securities and Exchange Commission says the market maker violated a provision of Regulation SHO, the regulatory framework designed to address abusive short selling practices, which requires broker-dealers to mark sale orders as long, short, or short exempt.

Also Read: SEC’s Director of Enforcement Now Under Investigation for Corruption

Market News Published Daily 📰

Market News Today - South Korea Regulators Now Probe Into Illegal Short Selling.
Market News Today – South Korea Regulators Now Probe Into Illegal Short Selling.

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors. This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily news and updates on your favorite stories.


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Citadel Is Now Suing The SEC Over New Transparency Rules

Ken Griffin’s Citadel Securities is now suing the SEC over its new market transparency rules meant to keep institutions under tighter surveillance.

Citadel Securities and the American Securities Association, a trade group, announced on Tuesday that they are suing Wall Street’s top regulator over new rules on the funding of a comprehensive market data surveillance system.

The litigation, brought before the U.S. Court of Appeals for the 11th Circuit in Atlanta, escalates the investment industry’s battle with the U.S. Securities and Exchange Commission over the so-called Consolidated Audit Trail (CAT),” reports Reuters.

The ASA says that the SEC has “overstepped its statutory authority” and “failed to address investor and industry concerns” leaving them with no choice but to litigate.

“The Commission undertakes its regulatory responsibilities consistent with its authorities,” an SEC spokesperson said.

“The CAT is a repository of investor and transaction data meant to give regulators all-encompassing insight into U.S. market transactions.

The SEC mandated the CAT’s creation in 2012 as a response to the “flash crash” two years earlier, when a sudden plunge on major Wall Street indices temporarily erased nearly $1 trillion in market value.

Republican officials and industry representatives have said the system presents cybersecurity and privacy risks and is likely to pass undue costs on to investors.”

Citadel was recently fined $7 million in penalties for naked short selling.

The Securities and Exchange Commission says the market maker violated a provision of Regulation SHO, the regulatory framework designed to address abusive short selling practices, which requires broker-dealers to mark sale orders as long, short, or short exempt.

“Compliance with the order marking requirements of Reg SHO is a key component of regulatory efforts to curtail abusive market practices, including ‘naked’ short selling,” said Mark Cave, Associate Director of the SEC’s Division of Enforcement.

SEC Commissioner Now Says Securities Lending Facilitates Illegal Trading

Market News Today - Citadel Is Now Suing The SEC Over New Transparency Rules.
Market News Today – Citadel Is Now Suing The SEC Over New Transparency Rules.

SEC Commissioner Jaime Lizarraga said on Friday that securities lending facilitates illegal trading.

The official SEC statement comes after regulators have been expected to adopt new market transparency rules that will shed light on short sellers and other market participants.

“As with securities lending, short sales, provided they are conducted in compliance with applicable rules, can play a valuable price discovery role in our capital markets.

That said, they can sometimes contribute to, or even cause, precipitous price declines, facilitate market manipulation, and generate market uncertainty and volatility”said Commissioner Lizarraga.

“To minimize the gap between these benefits and downsides, the Commission’s action today strikes the appropriate balance between increased transparency for investors and regulators of short sale-related data, and concerns about real-time disclosure of trading strategies.

Currently, Regulation SHO is the primary rule governing short sales of equities.

Although this rule imposes some recordkeeping obligations on broker-dealers, it does not require market participants to track whether short-sellers cover their short sales or report bona fide market-making information on a regular basis.

Today’s rule will shine a light on short sale activity by institutional investment managers.

It fills gaps in the data these managers currently report about their monthly and daily short sale activities.

This data is essential for the Commission to assess and monitor risks related to large short positions, for reconstructing market events, and for deterring fraud, manipulation, and other potential market abuses.

Today, investing communities have raised concerns of market manipulation in stocks such as AMC EntertainmentMeta MaterialsFingerMotionGlobal Tech Industries, Mullen Automotive, and many more.

Stock manipulation from short sellers, primarily hedge funds, is a topic that main street has been urging our regulators to tackle head on.

Also Read: SEC’s Director of Enforcement Now Under Investigation for Corruption

Market News Published Daily 📰

Market News Today - Citadel Is Now Suing The SEC Over New Transparency Rules.
Market News Today – Citadel Is Now Suing The SEC Over New Transparency Rules.

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors. This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily news and updates on your favorite stories.


Become a Sponsor for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
  • Become part of a private and safe Discord community, just for retail investors.
  • Get drawn at the end of the year for holiday giveaways.


SEC Commissioner Now Says Securities Lending Facilitates Illegal Trading

SEC Commissioner Jaime Lizarraga said on Friday that securities lending facilitates illegal trading.

The official SEC statement comes after regulators have been expected to adopt new market transparency rules that will shed light on short sellers and other market participants.

“As with securities lending, short sales, provided they are conducted in compliance with applicable rules, can play a valuable price discovery role in our capital markets.

That said, they can sometimes contribute to, or even cause, precipitous price declines, facilitate market manipulation, and generate market uncertainty and volatility”, said Commissioner Lizarraga.

“To minimize the gap between these benefits and downsides, the Commission’s action today strikes the appropriate balance between increased transparency for investors and regulators of short sale-related data, and concerns about real-time disclosure of trading strategies.

Currently, Regulation SHO is the primary rule governing short sales of equities.

Although this rule imposes some recordkeeping obligations on broker-dealers, it does not require market participants to track whether short-sellers cover their short sales or report bona fide market-making information on a regular basis.

Today’s rule will shine a light on short sale activity by institutional investment managers.

It fills gaps in the data these managers currently report about their monthly and daily short sale activities.

This data is essential for the Commission to assess and monitor risks related to large short positions, for reconstructing market events, and for deterring fraud, manipulation, and other potential market abuses.

Today, investing communities have raised concerns of market manipulation in stocks such as AMC Entertainment, Meta Materials, FingerMotion, Global Tech Industries, Mullen Automotive, and many more.

Stock manipulation from short sellers, primarily hedge funds, is a topic that main street has been urging our regulators to tackle head on.

Also Read: SEC’s Director of Enforcement Now Under Investigation for Corruption

Other Market News Today

Market News Today - SEC Commissioner Now Says Securities Lending Facilitates Illegal Trading.
Market News Today – SEC Commissioner Now Says Securities Lending Facilitates Illegal Trading.

For five years Citadel incorrectly marked short sales as long sales and vice versa according to the SEC’s latest report.

Retail investors have created an uproar on social media for two primary reasons.

  1. Citadel was only fined $7 million — which investors allege is merely a ‘pay to play’ fine.
  2. Citadel’s naked short selling “conspiracies” ended not being conspiracies, despite Bloomberg and WSJ journalists idolizing Citadel’s Ken Griffin.

For years now, retail investors have raised concerns over Citadel’s hedge fund and market making power, claiming there is simply too much conflicts of interest.

The Securities and Exchange Commission says the market maker violated a provision of Regulation SHO, the regulatory framework designed to address abusive short selling practices, which requires broker-dealers to mark sale orders as long, short, or short exempt.

According to the SEC’s order, for a five-year period, it is estimated that Citadel Securities incorrectly marked millions of orders, inaccurately denoting that certain short sales were long sales and vice versa.

“Compliance with the order marking requirements of Reg SHO is a key component of regulatory efforts to curtail abusive market practices, including ‘naked’ short selling,” said Mark Cave, Associate Director of the SEC’s Division of Enforcement.

“This action against Citadel Securities demonstrates that a broker-dealer’s failure to comply with the requirements of Reg SHO can have negative downstream consequences on the accuracy of the firm’s electronic records, including its electronic blue sheet reporting, depriving the Commission of important information about the markets it regulates.”

Investors on social media say Citadel’s punishment is miniscule compared to the institutions massive gains it claims to have made, especially in the past years.

Keep in mind, Madoff never lost either.

Also Read: Judge Now Finds Broker-Dealers May Be Liable for Illegal Trading

Market News Published Daily 📰

Market News Today - SEC Commissioner Now Says Securities Lending Facilitates Illegal Trading.
Market News Today – SEC Commissioner Now Says Securities Lending Facilitates Illegal Trading.

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors. This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily news and updates on your favorite stories.


Become a Sponsor for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
  • Become part of a private and safe Discord community, just for retail investors.
  • Get drawn at the end of the year for holiday giveaways.


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