Tag: Citadel Securities (Page 1 of 5)

SEC Scraps Vote for Hedge Fund Transparency Rule

SEC Scraps Vote for Hedge Fund Transparency Rule
Market News Daily: SEC scraps vote for hedge fund transparency rule.

(WSJ) The Securities and Exchange Commission scrapped plans to vote Wednesday on a rule that would have increased regulators’ visibility into financial risks at some hedge funds and private equity funds.

After scheduling the vote last week, the five-member commission “decided to take a little more time” on the rule, an SEC spokeswoman said.

She declined to comment on whether the cancellation owed to a lack of majority support from the commission, which is composed of three Democrats and two Republicans.

Several SEC commissioners could not immediately be reached for comment.

The rule, proposed early last year over Republican opposition, would have increased reporting requirements for filers of a confidential document called Form PF.

Among other proposed changes, it would have required large hedge funds to file reports within one business day of incidents such as extraordinary investment losses, defaults by major counterparties or spikes in margin requirements.

The rule sparked pushback from lobbyists for the hedge-fund and private-equity industries in Washington.

The Managed Funds Association, which represents hedge funds, urged the SEC last week to hold off on finalizing the rule until it was ready to adopt a separate Form PF proposal issued last August.

Who is the Managed Funds Association?

Who is the managed funds association?
Who is the managed funds association? Citadel’s Ken Griffin.

The Managed Funds Association, or MFA, is an association made up of a variety of hedge fund managers, including Citadel, Two Sigma, Point72, and Millennium Management.

That’s right, some of the industry’s biggest short sellers and the SEC just prolonged this transparency rule.

Citadel, Anchorage (defaulted), Millennium Management, and Bank of America are a few of the members who are or have been short on ‘meme stocks’ such as AMC Entertainment.

For years now, retail investors who were part of the events that occurred in 2021 have urged the SEC to enforce proper regulation from sneaky hedge funds and banks with overleveraged short positions.

The SEC has sparked excitement within the retail community when it’s announced proposals that would shed light on darker markets — however, trust has been severed as the regulator has only proved to be complicit to market injustices.

Dark pools, OTC trading, and naked shorting have suppressed retail’s favorite company stocks from rising on true demand.

Shorting has its purpose and is a useful tool to keep the markets balanced and in check.

Manipulative shorting on the other hand is what retail activists are fighting against — the un-American type that sinks businesses and disrupts innovation.

Northwest Biotherapeutics sued Citadel and other market makers for manipulating its stock price in December of 2022.

Ken Griffin’s Citadel chose to profit from the US cancer drug company through the means of short selling, a practice the hedge fund/market maker is notoriously known for.

Rather than allow the company to raise money for its treatments, hedge funds teamed up to profit from manipulated falling share prices.

But the lawsuit comes as no surprise to the retail community as Citadel has a long history of market manipulation.

Retail Investors Organize and Fight Back

Market News Daily: SEC Scraps Vote for Hedge Fund Transparency Rule.
Market News Daily: SEC Scraps Vote for Hedge Fund Transparency Rule.

‘We The Investors’ is taking Wall Street head on which means retail investors from around the world are now being represented in a way like never before for the first time in history.

More than 1,300 letters have been submitted to the SEC supporting rules proposed in December that represent the biggest changes to equities trading in nearly two decades, according to Reuters.

The collective of retail investors have joined ‘We The Investors’ led by Dave Lauer in efforts to combat Wall Street as a legitimate organization that sprouted from the events of the ‘meme stock’ frenzy in 2021.

Halts in AMC, GameStop, and other stocks during at the time angered many investors which led to the exposure of crime and market injustices on social media.

Retail investors have been pushing for market transparency ever since.

We The Investors has held two online meetings since December with SEC Chair Gary Gensler, who took questions directly from retail investors on the proposals, which include requiring most retail stock orders to be sent to auctions to boost competition.

Other proposed rules call for a new standard for brokers to demonstrate they’ve gotten the best execution for clients on transactions, as well as lower trading increments and access fees on exchanges, and stronger disclosure around retail order executions.

But Wall Street, including Ken Griffin’s Citadel is pushing back.

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

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Market News Daily: SEC Scraps Vote for Hedge Fund Transparency Rule.

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Citadel’s Ken Griffin Warns of Recession in America

Market News Daily: Citadel's Ken Griffin warns of recession in America.
Market News Daily: Citadel’s Ken Griffin warns of recession in America.

Citadel’s Ken Griffin warns of a recession in America, though many would be quick to state the nation is already in one.

Bank of America and Wells Fargo were one of the first to warn people in Q4 of last year.

Ken Griffin’s hedge fund Citadel was amongst the very few who turned in profits last year when majority of the industry lost $208 Billion for clients.

This marked the biggest single-year decline since 2008, when they lost $565 billion, LCH data showed.

Citadel’s gain of $16 billion last year was the largest annual gain ever made by a hedge fund manager, LCH said.

Retail investors grow weary of the hedge funds gains, comparing Ken Griffin to Bernie Madoff, who also never posted losses despite the industry crashing.

“The game is not fair and it never has been. Individual investors, even when operating in a swarm, are destined to lose. How do I know? I helped design the game,” says ex-Citadel Data Scientist Patrick McConlogue.

But Ken Griffin says he sees a setup for a US recession primarily due to people’s savings accounts being tarnished.

Here’s what the Citadel CEO had to say.

Ken Griffin Sees Setup for a US Recession

Market News Daily: Citadel's Ken Griffin warns of recession in America.
Market News Daily: Citadel’s Ken Griffin warns of recession in America.

(Bloomberg) Ken Griffin said the setup for a US recession is unfolding, with the Federal Reserve needing to raise interest rates further after Americans were stung with “traumatic” levels of inflation.

The founder of Citadel and Citadel Securities said the Fed is limited in how much it can fight inflation with interest-rate increases, likening the tool to “having surgery with a dull knife.”

“We have the setup for a recession unfolding,” he said in an interview with Bloomberg in Palm Beach, Florida.

Ken Griffin said he would advise Powell to say “less” on inflation.

“Every time they take the foot off the brake, or the market perceives they’re taking their foot off the brake, and the job’s not done, they make their work even harder.”

Ken predicted in 2020 that US markets would struggle with rampant inflation.

He said his firm is not far away from current market consensus on price growth.

“Americans are burning through their pandemic savings, and soaring interest rates are threatening the housing market and other parts of the economy.

That’s a recipe for a downturn, Ken Griffin told Bloomberg.”

Related: Citadel, Charles Schwab Team Up to Destroy SEC Proposals

Ken Griffin News: Citadel’s Ken Griffin talks recession, inflation, + more.

Market News Published Daily

Market News Daily: Citadel's Ken Griffin warns of recession in America.
Market News Daily: Citadel’s Ken Griffin warns of recession in America.

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Regulators Strengthen Punishment for Naked Short Selling

Market News Today - Regulators Strengthen Punishment for Naked Short Selling.
Market News Today – Regulators Strengthen Punishment for Naked Short Selling.

(BK) The Securities and Futures Commission of the Financial Services Commission imposed a pecuniary penalty of 6.05 billion won (US$4.58 million) on two securities companies that committed naked short selling.

The Financial Investment Services and Capital Markets Act of South Korea was revised in April 2021 so that illegal short sellers will face pecuniary penalties instead of fines.

The two companies have become the first such case.

Today, naked short selling is illegal in South Korea, unlike covered short selling.

Investors in the United States have raised naked short selling concerns on social media, urging the Securities and Exchange Commission to model the practice of nations such as South Korea.

Previously, illegal short selling in the South Korean stock market was detected infrequently and violators could go almost unpunished.

This is because the maximum fine according to the act before the revision was 100 million won (US$75,694).

According to the amended act, the maximum pecuniary penalty is equal to the amount of illegal short selling.

In addition, violation may lead to at least one year in prison or a fine equivalent to 300 to 500 percent of the illegal profit or avoided loss.

This model is raising attention in the United States as the predatorial practice has dominated the industry for decades.

Naked Short Selling in America

Market News Today - Regulators Strengthen Punishment for Naked Short Selling.
Market News Today – Regulators Strengthen Punishment for Naked Short Selling.

Today, naked short selling in the American markets is given a blind eye.

Retail investors believe U.S. regulators to be complicit in the market injustices that occur on a daily basis.

(Singapore) Genius Group (NYSEAMERICAN:GNS) CEO Roger Hamilton has led CEOs to take legal action against naked short selling in the market.

He recently shared a petition on social media to end naked short selling in efforts to raise awareness of the illegal short selling strategy.

Naked shorting is the illegal practice of short selling shares that have not been affirmatively determined to exist, per Investopedia.

The predatorial practice allows short sellers to short a stock without there actually being any stock available to short.

In 2015, The SEC approved the use of naked short selling on IPOs although it was deemed an illegal practice in 2010.

Roger Hamilton says he noticed something was wrong in his company stock after shares would plummet despite his company having strong fundamentals and funding.

This is when he began to speak publicly about what was happening to his company.

Another public figure who has spoken out against naked short selling is Jon Stewart.

Regulators have always had the power to stop the manipulation happening in our stock market but have created rules that cater primarily to hedge funds.

“The Game is Rigged” Says Ex-Citadel Data Scientist

Patrick McConlogue, an ex-Citadel Data Scientist said during the ‘meme stock’ frenzy that the stock market is rigged, claiming he helped design it.

“The game is not fair and it never has been. Individual investors, even when operating in a swarm, are destined to lose. How do I know? I helped design the game.”

The dilemma here is that institutions are able to get away with the ‘capitalism’ card every time an issue is brought to their attention.

SEC Chairman Gensler has said that the SEC cannot completely interfere with the industry due to a company’s capitalistic rights in America.

Which makes sense through a capitalistic view, however, there should be tougher laws in certain sectors and industries, especially those that have the power to create massive economic downturns.

Regulators in other countries have strengthened the punishment for naked short selling for a reason — the manipulation creates systemic risk.

The question is, how many times will the U.S have to see the collapse of markets and our economy to understand this?

Other countries have recognized these fallacies in their market, maybe it’s time the U.S does the same.

Related: ‘We The Investors’ Challenges Wall Street on New SEC Proposals

Market News Published Daily

Market News Today - Regulators Strengthen Punishment for Naked Short Selling.
Market News Today – Regulators Strengthen Punishment for Naked Short Selling.

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Citadel Has a Long History of Market Manipulation

Citadel Market Manipulation
Market News: Citadel and friends are entering the crypto space | Ken Griffin.

Ken Griffin and friends are entering the crypto world very soon — investors are concerned as Citadel has a history of several violations and fines.

EDX Markets plans to bring ‘traditional finance’ to the crypto space, a not so ‘traditional’ space to begin with.

The exchange made up of Citadel, Sequoia, Paradigm, Virtu, Charles Schwab, and Fidelity is debuting in November.

EDX Markets will start trading a limited number of spot, crypto tokens starting with a November trial period, with the official launch in January, per Bloomberg.

Similar to trading equities and options, EDX will allow investors to buy and sell digital assets through their existing broker dealer, rather than an outside venue or directly through a crypto-native exchange. 

“We’re taking some of the best features of traditional finance and bringing it to the digital markets to make it more efficient, and bring that cost saving to investors,” Nazarali said.

Nazarali is the former global head of business development at Citadel Securities.

But as many are aware, these financial institutions have a long history of playing unfair.

Will these sharks taint the crypto space too?

Let’s look at Citadel’s market manipulation history as well as other Citadel violations and fines in the past.

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Citadel Market Manipulation

Citadel Fines and market manipulation.
Citadel violation and fines – market manipulation.

2015

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.

The investigation focused on a practice known as “spoofing” in which an investor submits a buy or sell order but then withdraws it before a sale is completed — a practice that can mislead investors by creating the false impression that a stock is trading at a particular price.

Citadel confirmed that one of its accounts managed by Guosen Futures was among those suspended.

2017

SEC Citadel

In 2017 Citadel was fined by the SEC $22.6 million to settle charges of misleading conduct.

The hedge fund misled customers about the way it priced trades.

The SEC found that between 2007 and 2010, Citadel used two algorithms to execute stock trades on customers’ behalf that gave investors a worse price for their trades, even when Citadel knew better prices existed elsewhere.

“This affected millions of retail orders,” said Stephanie Avakian, the acting director of enforcement at the SEC at the time.

Citadel neither admitted nor denied the findings.

2021

Citadel violations and fines.
Citadel violations and fines – market manipulation.

In 2021, Failure-to-Delivers (FTDs) rose dramatically in the period leading up to January 28th, 2021, a phenomenon consistent with increasing short interest by market makers such as Citadel Securities.

FTDs are indictive of naked short selling, which occurs when a short seller does not actually possess the security it is supposed to borrow.

This practice is largely inaccessible to individual investors but accessible to market makers.

At the time, Citadel, Robinhood, and others restricted retail investors from buying ‘meme stocks’ in order to prevent escalating institutional losses.

Citadel eventually lost billions after betting against AMC Entertainment in 2021.

But the entire system needs a refresh – The DTCC waived a total of $9.7 billion of collateral deposit requirements on January 28, 2021, saving brokers, and screwing up retail investors.

2022

The Chicago Tribune published a piece explaining exactly what retail investors have been warning the SEC about.

Citadel Securities’ dark pool dominates a big part of the financial world, accounting for as much as half of U.S. stock market activity.

The Chicago Tribune says this prominent dark pool is run by Chicago Billionaire Ken Griffin’s Citadel Securities and has been targeting small scale retail investors.

And they’re not wrong.

Dark pools are typically involved in payment for order flow (PFOF), where they pay broker firms to receive retail order flow.

Brokers such as Robinhood and TD Ameritrade accept payment for order flow.

But retail investors have been bringing these nefarious practices in the market to light.

Related: Biotech Company Suing Citadel Over Market Manipulation

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95% of Retail Orders Don’t Go Through Lit Exchange

Gary Gensler says 90%-95% of retail orders don't go through lit exchange
Gary Gensler says 90%-95% of retail orders don’t go through lit exchange.

Gary Gensler announced exclusively on Bloomberg (see below) that 90-95% of retail orders don’t go through the lit exchange.

The SEC Commissioner says these orders are rerouted to dark pools rather than the NYSE.

It was only a year after the ‘meme stock’ frenzy that the community receives this official news.

The ‘ape’ community has been labeled as conspiracy theorists but have proven to be correct time and time again on the market injustices that have been occurring for decades.

Here’s the latest market news.

Franknez.com

Welcome to Franknez.com – Gary Gensler has confirmed the market manipulation that the ‘ape’ community has been exposing all for years now.

This is big for the retail community because for some time, ‘smart money’ was referring to investors as conspiracy theorists.

And can the SEC suspend dark pool trading?

Let’s dive right into it.

Gary Gensler on Dark Pools via Bloomberg

Gary Gensler confirms 90%-95% or retail orders are processed in dark pools

SEC Chairman and Commissioner Gary Gensler says payment for order flow is partly the reason why orders aren’t processed on the lit exchange.

He says retail orders go to wholesalers on an order-by-order competition.

Citadel’s Ken Griffin has praised PFOF stating it’s good for retail investors.

However, PFOF allows market makers to process retails orders in the ‘dark markets’, or dark pools.

This means retail buying volume is out of sync with AMC’s actual share price.

AMC’s share price is synthetic, it only reflects a small portion of buying volume.

Market Makers Have Been Stealing from Retail Investors

Market makers have been stealing from retail investors with absolutely no consequence from regulators.

Now that the cat is out of the hat, what is going to be done about it?

How does one account for all the orders that have been derailed from the lit exchange market and fix the share price to reflect the correct amount?

Banning PFOF is one thing but what about the money that has been masked by dark pools?

Will these financial institutions be held accountable for financial treason?

The integrity of the stock market has been tainted for far too long, now it’s time to take action.

Will PFOF get banned in the U.S?

Will PFOF get banned in the United States?
Will PFOF get banned in the United States?

According to Gary Gensler, PFOF is banned in the UK, Canada, Australia, and in Europe.

However, because the U.S has a very strong capitalist economy, it could prove to be difficult.

Gensler says, “I think it’s natural that we look to say, how do we drive great competition and efficiency in this market, and use the tools that congress has given us.”

Here the SEC Chairman is saying their solution is to find someone who can compete with these market makers rather than banning PFOF in general.

We’ve seen these efforts through the IEX exchange D-Limit order.

IEX is a lit exchange that reflects much more accurate share prices and eliminates the predatorial strategies used by market makers and hedge funds.

These strategies include PFOF and high frequency trading.

Recently, Citadel, Charles Schwab, and the NYSE have teamed up to destroy new SEC Proposals.

However, ‘We The Investors’ has challenged Wall Street by submitting more than 1,300 letters supporting the SEC’s proposals.

Retail Wants Orders Processed Through the Lit Exchange

The SEC is supposed to be protecting retail investors from nefarious market practices.

Therefore, it is the SEC’s duty to find a solution and locate the money that retail is missing.

Retail wants orders processed through the lit exchange.

Market makers do not have the consent to move retail money through dark pools or other foreign markets.

#MarketMakersDontHaveConsent

Can the SEC Suspend Dark Pools?

Yes, the U.S. Securities and Exchange Commission (SEC) has the authority to suspend dark pools if it believes that they are violating securities laws or posing a risk to investors or the integrity of the markets.

Dark pools are private trading venues that allow institutional investors to buy and sell large blocks of securities without revealing their trading intentions to the public.

While dark pools can provide benefits such as reducing market impact and improving execution quality, they can also raise concerns about transparency and fairness.

The SEC has taken action in the past to regulate dark pools and address potential abuses.

For example, in 2014, the SEC brought charges against a major dark pool operator for making false statements to investors about the operation of its trading platform, leading to a $12 million settlement.

In 2020, the SEC proposed rules that would increase transparency and disclosure requirements for dark pools.

If the SEC determines that a dark pool is engaged in unlawful activities or poses a risk to investors or the markets, it can suspend the dark pool’s operations, require it to take remedial actions, or take other enforcement actions as appropriate.

Market News Published Daily

Market News Today - Can the SEC suspend dark pools?
Market News Today – Can the SEC suspend dark pools?

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Citadel, Charles Schwab Team Up to Destroy SEC Proposals

Citadel, Charles Schwab Team Up to Fight SEC Proposals
Market News Daily: Wall Street Pushes Back Against SEC Stock Market Reforms 2023.

(Reuters) The New York Stock Exchange teamed up with retail broker Charles Schwab Corp and market maker Citadel Securities on Monday to ask the U.S. Securities and Exchange Commission to withdraw two recently proposed rules aimed at revamping how stocks trade.

The move represents a coordinated industry push back against what are potentially the most impactful proposals in the SEC’s biggest attempt to reform stock market rules in nearly 20 years.

“We are deeply concerned that the Commission has simultaneously issued multiple far-reaching proposals that would dramatically overhaul current market structure without adequately assessing the cumulative impact on the market or the potential for unintended consequences,” the companies said in an SEC comment letter.

The SEC in December proposed requiring nearly all retail stock orders to be sent to auctions, as well as a new standard for brokers to show they get the best possible executions for their clients’ orders.

The SEC also proposed lower trading increments and access fees on exchanges, and more robust retail order execution disclosures.

And now Citadel, Charles Schwab, and the New York Stock Exchange are fighting against these proposals that will help level the playing field for retail investors.

Payment for order flow has annihilated competition and reserved market maker Citadel Securities the right to buy retail orders from brokers such as Robinhood and TD Ameritrade.

During an interview with SEC Chairman Gary Gensler, the Chairman tells ‘We The Investors‘ that he believes the SEC should have the ‘Best Execution Rule‘, not the self-regulatory organization, FINRA.

Citadel Said in 2004 PFOF Should Be Banned

New York Stock Exchange News | Citadel SEC News Today.
New York Stock Exchange News | Citadel SEC News Today.

Citadel pushed back on the possibility of a payment for order flow (PFOF) ban in June of 2022.

But Citadel said in 2004 that payment for order flow creates conflicts of interest and should be banned, according to an SEC file.

Gary Gensler said there may be a conflict of interest for brokers and that too much power is concentrated in a handful of market makers.

The SEC Chairman plans to reroute retail investors into an automated system that would provide a deep pool of liquidity.

The aim of the proposed rules is to improve market quality and efficiency, by boosting competition for retail stock orders and reducing unnecessary intermediation, SEC Chair Gary Gensler has said.

However, the NYSE, along with Schwab and Citadel Securities, asked the SEC to indefinitely withdraw the auction and best execution proposals, saying they could lead to less market liquidity and create confusing regulatory overlap.

“We believe that this more targeted approach will result in significant benefits for U.S. equity market participants, while meaningfully reducing the risk of negative outcomes for markets and investors, including the risk of firms retreating from being liquidity providers – which would be particularly detrimental to retail investors,” they said.

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

Market News Published Daily

Market News Today - Citadel News Today.
Market News Today – Wall Street Pushes Back Against SEC Stock Market Reforms | Citadel against SEC Proposals 2023.

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Citadel Said in 2004 Payment for Order Flow Creates Conflict

Market News Today: Citadel said payment for order flow creates conflicts of interest.
Market News Today: Citadel said payment for order flow creates conflicts of interest.

Citadel pushed back on the possibility of a payment for order flow (PFOF) ban in June of 2022.

But Citadel said in 2004 that payment for order flow “creates conflicts of interest and should be banned”, according to an SEC file.

Gary Gensler said there may be a conflict of interest for brokers and that too much power is concentrated in a handful of market makers.

The SEC Chairman plans to reroute retail investors into an automated system that would provide a deep pool of liquidity.

“Citadel Group urges the Commission to ban payment for order flow. This
practice distorts order routing decisions, is anti-competitive, and creates an obvious and substantial conflict of interest between broker-dealers and their customers.

Citadel against payment for order flow 2004.
Citadel against payment for order flow 2004.

Broker dealers accepting payment for order flow have a strong incentive to route orders based on the amount of order flow payments, which benefit these broker-dealers, rather than on the basis of execution quality, which benefits their customers.”

These statements come directly from Citadel in the filing.

After the GameStop and AMC incidents in 2021, retail investors urged the SEC to ban payment for order flow after discovering Robinhood reroutes retail orders to short-seller Citadel.

“Redditors, thank you so much for helping create the best pipeline we’ve ever had”, said Ken Griffin on Business Insider.

Citadel and Industry Push Back

A spokesperson for Citadel Securities released the following statement to CNBC:

“It is important to recognize that the current market structure has resulted in tighter spreads, greater transparency, and meaningfully reduced costs for retail investors. We look forward to reviewing the proposals and working with the SEC and the industry towards our longstanding objective of further improving competition and transparency.”

“You need to be very deliberate on that approach,” Ken Bentsen, president and CEO of the Securities Industry and Financial Markets Association (SIFMA) said.

“We have been calling for a review of market structure for some time, but let’s be careful not to try to fix things that may not be broken,” he said. “The retail investor is getting a better deal than they ever have.”

It looks like a lot has changed since 2004.

Citadel was able to identify how advantageous PFOF was and ultimately decided to weaponize it themselves.

Should the SEC ban PFOF?

What are your thoughts on Citadel’s statements versus where the company stands today with the practice?

Also Read: How Bloomberg’s Beloved Citadel Securities Manipulates the Market

Market News Published Daily

Market News Today: Citadel said payment for order flow creates conflicts of interest in 2004.
Market News Today: Citadel said payment for order flow creates conflicts of interest in 2004.

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Hedge Funds Lost $208 Billion in 2022 for Clients

How much money did hedge funds lose last year
Market News: Hedge Fund losses in 2022.

(Reuters) In 2022, when fears of rising interest rates and geopolitical uncertainty weighed on markets, investment firms that focused on trading strategies and bet on macroeconomic trends reaped gains.

Those with strategies linked to market moves stumbled.

Last year will mostly be remembered as a tough one, with the broader S&P 500 (.SPX) index losing 20% and blue chip hedge fund managers like Tiger Global and Third Point nursing losses.

Tiger Global was on the brink of collapsing all last year as it struggled to stay afloat.

Overall, hedge funds lost $208 billion in 2022 for clients, marking the biggest single-year decline since 2008, when they lost $565 billion, LCH data showed.

Hedge funds, which were jointly managing $3.3 trillion on Dec. 31, 2022, according to eVestment data, often promise to outperform, especially when markets are stumbling.

And according to WSJ, short sellers were down $81 billion by the end of January this new year after stocks rallied.

Goldman says bigger short squeezes are coming since the ‘meme stock’ frenzy.

Still, the direction of the market in 2023 is uncertain as recession talks loom.

Few Hedge Funds Survived 2022

Hedge Fund Losses 2022 - Citadel Securities Ken Griffin thanks Redditors.
Hedge Fund Losses 2022 – Citadel Securities Ken Griffin thanks Redditors.

The 20 best performing hedge fund managers earned $22.4 billion for investors in 2022, marking their slimmest gains since 2016 as many firms, including Tiger Global Management, struggled with slumping financial markets, LCH Investments data show.

Citadel’s gain of $16 billion last year was the largest annual gain ever made by a hedge fund manager, LCH said.

The top 20 managers, led by Ken Griffin’s Citadel, Bridgewater Associates and D.E. Shaw Group, made less than half of the $65.4 billion the group returned in 2021 when rising stock prices led to a record return.

In comparison, they made $63.5 billion in 2020 and $59.3 billion in 2019.

“Redditors, thank you so much for helping create the best pipeline we’ve ever had”, said Ken Griffin on Business Insider.

Ken Griffin, on how the GameStop frenzy helped raise Citadel’s profile with potential hires.

The GameStop affair, in an odd twist, actually helped boost Citadel’s clout with potential recruits, Griffin said.

“For a lot of people this was a wake-up call that this firm Citadel is actually one of the most important players in the world’s financial markets,” he told Business Insider.

“Redditors, thank you so much for helping create the best pipeline we’ve ever had.”

Citadel Securities had to receive a $1.2 billion lifeline from partners Sequoia and Paradigm in the beginning of 2022.

In March, the hedge fund froze customers from being able to withdraw their money.

Read: Disney Lays Off 7,000 as Streaming Services Tank

Market News Published Daily

Market News Today - Hedge Fund losses 2022 report.
Market News Today – Hedge Fund losses 2022 report.

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Ken Griffin Thanks Redditors for ‘Meme Stocks’

Ken Griffin Thanks Redditors for 'Meme Stocks'

“Redditors, thank you so much for helping create the best pipeline we’ve ever had”, said Ken Griffin on Business Insider.

Ken Griffin, on how the GameStop frenzy helped raise Citadel’s profile with potential hires.

Business Insider says the SEC found no truth to any of the conspiracy theories but how can the SEC really go against one of the most powerful hedge funds in the world?

Transcripts showed Citadel and Robinhood did in fact have “blunt negotiations” the night prior to the halts.

A Miami district court judge admitted the Citadel and Robinhood transcripts were suspicious.

However, the federal court has dismissed the case due to a ‘lack of evidence’.

Research shows Judge Cecilia Altonaga had a close connection to the defendant’s law firm, insinuating a conflict of interest in the case.

Ken Griffin on Meme Stock Rally

The GameStop affair, in an odd twist, actually helped boost Citadel’s clout with potential recruits, Griffin said.

“For a lot of people this was a wake-up call that this firm Citadel is actually one of the most important players in the world’s financial markets,” he told Business Insider.

“Redditors, thank you so much for helping create the best pipeline we’ve ever had.”

“We’ve lost sight of the opportunities people can enjoy in America in recent years,” Griffin said.

To help counteract that, Griffin said he plans to give away the vast majority of his fortune during his lifetime.

“I’m going to give my money away in a way that I think has a real impact for our country,” he said. “I hope that the gifts I make will have an impact on America and the world for many years to come.”

Source(s): Business Insider.

Retail Investors Weigh In

Ken Griffin has made his money off the backs of retail investors who are simply looking to start building wealth through their favorite company stocks.

Retail investors say Ken Griffin’s Citadel takes advantage of its payment for order flow (PFOF) and use of off-exchange trading.

Backdoors in the financial system allow institutions to essentially control the game even when the ball is in retail’s court.

Chairman Gensler has even admitted to dark pools having a strong suppression on a securities share price which goes to show how much power these institutions really have in the game.

Were Ken Griffin’s comments about ‘meme stocks’ and redditors arrogant?

Leave your thoughts below.

Market News Published Daily

Market News: Ken Griffin on 'meme stocks' and redditors.
Market News: Ken Griffin on ‘meme stocks’ and redditors.

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Citadel High Frequency Trading: Fined by Korea’s Regulators

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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