It also equivalates to 24.99% of the shares outstanding.
Below I break down their proof of naked shorting in AMC.
Welcome to Franknez.com – proof of naked shorting has surfaced in a data driven article by a community member. I will break down pieces of the long article to simply its content.
Let’s get started!
In this excel file you’ll find that AMC has the largest percentage of shares outstanding compared to a variety of ticker symbols held by Apex.
The second company with the highest shares outstanding is CAR stock at 16%, which just had a short squeeze.
Car Stock Short Squeeze Chart
Proof of Naked Shorting in AMC
Naked shares AMC
The lowest point of this graph reflects the 24.99% shares outstanding on Apex (December).
You can imagine how much higher this percentage was back in January and May of 2021 (peaks).
So, although we see an incredible amount of share dilution last year, the percentage is still rather high going into 2022.
LTF argues that the percentage should be around 1% or less considering Apex is not even one of the top clearing firms and touches topic on “market-maker alliance”.
While one might argue that we would need more information from other market makers to validate the existence of naked shares, this is certainly a good start.
The argument isn’t about how many naked shares are out there, but whether they exist or not.
Let’s hear what Charles Gradante has to say.
Also, be sure to watch the topic discussion on YouTube at the end of the article.
Charles Gradante on Naked Shorting
In this incredible event panel, hedge fund industry expert Charles Gradante provides us with insight on what’s truly happening from Wall Street’s perspective that mainstream media isn’t talking about.
While mainstream media and regulators look at retail investors, Charles Gradante explains market makers favor shorting stock, creating a massive conflict of interest given the incredible amount of power they have over the markets.
Charles Gradante on meme stocks and market makers
Charles Gradante says regulators don’t know how to handle “it” when referring to the market manipulation surrounding “meme stocks”.
“When shorting got out of hand, the market makers created synthetic shorts”
Charles Gradante
Charles provides retail investors with an immense amount of value in this short video.
He walks us through the taking away of the buy button in order to benefit market makers and hedge funds who went short on AMC and GameStop.
Ladies and gentlemen, we now have proof of naked shares in the market.
Retail investors must now look onto regulators to ensure every single naked share out there is bought back and reflected accurately on the lit market.
The biggest transfer of wealth will require individuals to tackle their rights for it.
Once again, the ape community was right.
What to expect moving forward
AMC stock continues to be bought and held by retail investors across the world in attempts to squeeze big shorts from their positions and create real change in the markets.
The play has become more than just a trade, it’s become a movement.
Persistence and patience are what will create this massive transfer of wealth for anyone holding these heavily and overleveraged stocks.
Regulators will be forced to find solutions with integrity or face the consequences from the new world.
Subscribe to the blog for more content and updates.
The feds have been pumping so much money into the financial systems for banks and hedge funds to maintain margin requirements from.
Hedge funds have been overleveraging their positions due to betting against retail investors who aren’t giving up the fight for a fair market, and a short squeeze play in their favorite ‘meme stocks’.
Will banks margin call hedge funds to meet the new capital requirements as of October 1st?
Or will they default?
Hedge Funds Just Got Smaller
We’re beginning to see financial institutions throw other institutions under the bus.
Citadel began pointing fingers towards Robinhood during a rant on Twitter.
I think very soon we’re going to see banks do the same towards hedge funds.
Will hedge funds be able to pay back banks?
Someone has to pay back the overleveraged debt they owe.
What started from a Robinhood and Citadel scandal just climbed the hierarchy and is now involving both the banks and feds.
This could be the biggest financial scandal in history.
Is America Headed Towards Financial Collapse?
Janet Yellen just recently said, “there are issues relating to hedge funds and the possibility of leverage, they can trigger financial runs.”
So, we know that any chance of financial ruin in the markets is tied to overleveraged hedge funds and financial institutions.
Hedge funds have been borrowing money from both the banks and the feds.
The feds weren’t stopping overleveraged institutions from borrowing money, but rather contributing to their needs and gaining from them, as seen with Kaplan and Rosengren.
It seems leaders are washing their hands before these scandals continue to escalate.
A substantial portion of Citadel’s assets are held by Bank of America’s clearing house “BAML“.
Powerful leaders are fleeing the crime scene. Who are the first to flee a sinking ship?
Leave a comment below if you know the answer to this one.
Will Bank of America Go Bankrupt?
Bank of America has a ‘more than 75%’ probability score for bankruptcy, via MacroAxis.
The fact is there is no path that can save overleveraged institutions or short sellers betting against retail investors right now.
The future of the short seller is grim.
To make matter worse for the bank, retail investors are pulling their money out from the bank before things get a little more severe.
In fact, one of my personal family members just moved 98% of their money from BofA into a brokerage account.
Overleveraged hedge funds and banks will be the cause of the next financial collapse.
Something massive is coming very soon and I know the community can feel it.
I speculate paper-hand sellers will soon re-enter the markets as the first wave of short sellers begin to close out their positions.
This momentum will only further complicate the state of emergency these financial institutions are currently in.
What Happens If A Bank Goes Bankrupt?
If a bank goes bankrupt, the FDIC must collect and sell the assets of the bank and settle its debt.
For AMC and GME shareholders, this means that all the shares that were borrowed will finally get bought back.
Heavily shorted stocks would skyrocket as overleveraged debt is finally closed out.
The results? MOASS (mother of all short squeezes).
The momentum from billions of shares being bought back could push ‘meme stocks’ to unprecedented numbers.
Whether Bank of America goes bankrupt will depend on whether they file for bankruptcy protection or not.
A short squeeze play is imminent and there’s no doubt financial institutions are preparing for it.
The Stock Market Is Rigged
“The stock market is a rigged game for the wealthy as corporate execs can hide behind trading plans as they buy or sell stock, sometimes based on nonpublic information.” via ZeroHedge.
We’re seeing this happen right before our very own eyes. Fed presidents Kaplan and Rosengren were using their power to mold regulation in theirs and their partners favor.
Bank of America has been a liquidity refuge for Citadel, allowing them to overleverage their positions in heavily shorted stock without repercussions.
We saw that Robinhood executives sold AMC and GME stock right before halting trading back in January of this year.
CEO of Citadel Securities, Ken Griffin owns News Corp, the company that has ownership over Wall Street Journal, Barrons, MarketWatch, DOW Jones, and other media outlets spewing ill words of AMC Entertainment and its community.
There’s a major conflict of interest when the owner of all these companies is using them to pump propaganda to fit a nefarious agenda.
Citadel Securities attempted to bankrupt AMC Entertainment earlier this year but failed after retail investors saved the company.
Because AMC stock has a short squeeze set up, retail investors are not leaving until overleveraged hedge funds have closed their short positions in AMC.
Though the multi-billionaire has the power to influence these companies, the community has the power to expose these untrustworthy media platforms.
And that’s enough to raise awareness.
The Fall of Hedge Funds and FUD Media
Both hedge funds and FUD media platforms face intense scrutiny from investors.
Citadel’s customers are in for a massive shakeup entering 2022.
The hedge fund just updated their liquidity terms for all investors and the institution continues to lose money on bets they’re not willing to close.
They are limiting quarterly withdrawals to 6.25%, meaning it would take 16 quarters, or four years to fully pull out unless the client is willing to pay a fee.
Unless Citadel Securities closes their heavily shorted positions in both AMC and GME, clients are in for more losses leading into 2022.
Should clients pull out?
It’s definitely worth considering.
Welcome to Franknez.com – hedge fund Citadel Securities has just made a desperate attempt to keep their clients’ money. Desperate times call for desperate measures.
Let’s get started!
Community, this is massive.
Aside from setting tighter restrictions on withdrawals, Citadel Securities is also giving their clients an ultimatum.
Citadel Gives Desperate Ultimatum to Customers
Citadel’s funds are currently closed to new investors, so if someone quits, they might not be allowed back in the future.
The hedge fund has given this desperate ultimatum to its customers in efforts to hedge against losing bets.
Clients have a better chance at yielding returns by opening a brokerage account and investing in an index fund every month.
More of the general public is learning how to invest in stocks.
They’re not looking for hedge funds to play with their money.
They are taking accountability and researching where their money can grow both short-term and long-term.
Analyst Says ‘Buy GME and AMC’ Before Evergrande Crash
A veteran credit analyst is encouraging buying GME and AMC shares to hedge against a market crash.
In this article I discuss why the possibility of AMC and GME experiencing a MOASS is very likely due to an Evergrande crash.
Now, Dr. Marco Metzler, an advisory board member of the German Market Screen Agency says crypto and ‘meme stocks’ can yield a massive opportunity for investors.
Retail investors in the AMC and GME community have been right all year.
Overleveraged positions, dark pool trading, naked shorting, negative beta, all of it.
AMC and GME stock are going to experience massive short squeezes and hedge funds betting against these two stocks are about to cause severe losses for their clients.
The Fed’s just published a letter under SR 21-19 to supervise and assess the actions that led to the Archegos default by examining financial institutions and their relationships to investment funds.
The Federal Reserve is issuing this guidance to limit risk management.
SR 21-19 is intended for banking organizations with large portfolios and relationships with investment funds, such as hedge funds.
Some of you in the community wanted me to explain what this letter means and so I’m going to be breaking it down for you today.
Welcome to Franknez.com – today’s market news has to do with the Fed’s cracking down on banks and hedge funds. Interesting things are happening at the end of the year, aren’t they?
Let’s get started!
Speaking of interesting things happening.
The ape community has attracted the attention of the SEC, mainstream media, and now the Federal Reserve.
It’s worth noting that progress is progress, no matter how slow or long it takes.
Why is SR 21-19 Significant?
This federal piece of document is significant for many reasons.
It highlights lack of transparency in the markets.
The letter acknowledges a relationship amongst financial entities and confirms strategic involvement.
It expresses how overleveraging positions pose a major risk towards meeting debt obligations.
And finally, SR 21-19 touches topic on providing proper margin terms to these institutions.
And on top of that, a hefty fee for withdrawing their investments.
New Margin Call Terms Are on The Horizon
It is unclear what the margin call terms will be for these overleveraged financial institutions.
However, the letter states that they will be ensuring that these institutions receive the appropriate margin requirements.
They will either avoid inflexible and risk-insensitive margin terms or extend close-out periods.
Risk-insensitive meaning appropriately raising the margin requirements dependent upon how overleveraged a financial institution is.
Hedge funds shorting AMC and GME stock have amounted an overwhelming number of borrowed shares to short the stocks.
Yet these stocks have remained leveled due to the strength of retail investors.
The feds are about to impose massive margin requirements on overleveraged hedge funds.
Now, we won’t know how long this process will take.
What we do know is that the federal government isn’t taking hedge funds lightly anymore.
And if the appropriate margin terms are too high for hedge funds to maintain, then they’ll be forced to close short positions.
Getting To the Bottom of Synthetic Shares
Will the feds come across the millions of synthetic shares these overleveraged hedge funds have created?
It will be a massive surprise if they don’t.
See, the feds are requiring their supervisors to receive adequate information to fully understand the risks of the investment funds they are investigating.
This includes positions and counterparty concentrations, or a specific sector in which two financial entities are specifically focused on.
Failing to meet transparency will mean the feds will take action on setting conservative terms between the parties.
Identifying synthetic shares in the market is a rabbit hole the feds themselves will have to go down.
My suggestion is for the community to push the Department of Justice to investigate these synthetics.
Raising awareness to these problems in the market is key to sparking a MOASS.
2022 Is Going to Be an Interesting Year for Hedge Funds
Hedge funds face more scrutiny than ever before in history.
They have created system risk and pose a threat to our businesses and economy.
Hedge funds never saw a community of activists fight them for a fair market.
Retail investors caused Archegos to default and Melvin Capital to lose billions of dollars resulting in a life-line from Citadel Securities.
Melvin Capital has stated that they’re out of the game.
A Miami district court judge admits the Citadel and Robinhood transcripts are suspicious.
However, the federal court has dismissed the case due to a lack of evidence.
Now, it’s important to note this case is separate from Citadel vs SEC.
This is the class action lawsuit by retail investors claiming Citadel Securities and Robinhood conspired to halt GameStop trading and other ‘meme stocks’.
Welcome to Franknez.com – the blog that fights for the retail investor. Today we’re discussing the latest market news surrounding Citadel and Robinhood.
Justice may have not been served but at least the message from retail investors has been made loud and clear.
According to Business Insider, the court said that the evidence between Citadel Securities and Robinhood was not sufficient.
And although retail didn’t win this one, retail did manage to put 6 crooked financial institutions in court.
Judge Cecilia Altonaga Connection to Defendant’s Law Firm
What’s suspicious is that Altonaga’s husband George Mencio, is a partner to Holland and Knight, the defendant of Two Signa Securities in this case.
This creates a major conflict of interest.
This again goes to show the advantages the system has over retail investors.
While it is not confirmed whether George Mencio actually defended Two Signa Securities himself, the connection between both parties is rather jarring nonetheless.
The Reddit community is taking this matter very seriously.
Bookmark this page for possible updates.
Apes Fight a Polluted Financial System
The class action lawsuit came about after “Ken Griffin lied” went viral on Twitter.
Transcripts between Citadel and Robinhood were leaked regarding the halt of GameStop and AMC earlier this year.
Now a federal judge is saying there isn’t enough evidence.
And while politicians can be bought, retail investors can’t.
Our financial system needs honest people.
This case will be another reason why the ape community will continue to make noise.
Names are being recorded and those failing to protect the people are writing their legacy.
The retail community wants justice.
It seems that for every solution retail has, there’s always some connection that intervenes.
What Do You Think Can Be Done?
I’m curious to know what you think can be done about this incompetence.
Who with massive influence can help the community shed light on these matters?
Do you think Adam Aron has a plan to take down the culprits betting against his company?
Leave a comment below.
Final Thoughts
Whether the connection between Judge Altonaga and George is merely a coincidence, it’s a rather good one.
Matters like this only further build my conviction in fighting for a fair market structure.
As I mentioned earlier, perhaps there was no justice in court, but there was acknowledgement.
The fight for a fair market will not happen overnight, we are living in its process.
#KenGriffinLied is trending number 1 on Twitter right now. A document was just released showing messages between Vlad and Robinhood COO, Gretchen Howard, in regards to Citadel making demands on limiting PFOF (Payment For Order Flow) back in January.
The conversation then shows Vlad stating, “maybe this could be a good time for me to chat with Ken Griffin”.
Ken Griffin lied under oath by stating Citadel had no communication with Robinhood in regards to the halts on AMC and GameStop back in January.
Hedge funds have since been overleveraging their short positions while manipulating AMC and GameStop’s stock price through the illicit use of naked shorting and dark pool trading.
Retail investors are now looking at regulators to take serious action.
Welcome to Franknez.com – I’ve said it before and I’ll say it again. You are creating change this very moment. Lets discuss what we need to do to end this market manipulation once and for all.
Lets get started!
Will The SEC Protect Retail Investors From Market Manipulation?
But before I do, if you don’t know who Ken Griffin is, he’s the CEO to the Citadel Securities. This is the hedge fund who’s been betting against AMC and GameStop for months now.
Citadel is what you get if our government’s power was not divided into three branches. See, the problem here is Citadel LLC is a hedge fund, Citadel Securities is a market maker, and Citadel Connect is a dark pool.
You essentially have a tyrant making all the rules for themselves.
Now, many of you have been tagging the SEC, Gary Gensler, and even Potus on Twitter. Now it’s time for the community to see what measures are taken by our government leaders to protect its people.
In the transcript above, you can see the initial conversation between Gretchen (Robinhood COO), and Vlad Tenev (Robinhood CEO). Shortly after we see another transcript confirming the communication between Robinhood and Citadel..
Jim Swartwout is the President and CEO of Robinhood Securities. In the transcript above he states, “you wouldn’t believe the convo we had with Citadel, total mess.”
And get this, after 9 months of silence on Twitter, Citadel has gone on to lie again stating this is conspiracy theory. Although the transcripts show evidence in plain ol’ English.
The community is fighting for change. Citadel has yet to address their abuse of power through naked shorting and the usage of dark pools to mask bullish moves in the market.
Here is the footage of Ken Griffin lying about his team having any communication with Robinhood during the halts back in January.
The cat is out of the bag! Community, we must continue to fight for our rights for a fair market. The SEC has the power to liquidate these overleveraged hedge funds from their positions.
We must demand it. Only then will AMC and GME squeeze. This play, it’s your birthright.
Fox Business On Ken Griffin
In a recent interview with Trey’s Trades, Charles Payne and Trey discuss the matter.
Charles pull up some information confirming about 60% of AMC was traded through dark pools to which he asks Trey if it’s possible AMC’s share price potential could be higher if it did not trade through dark pools.
And of course the answer is that both AMC and GameStop could reach higher potentials if the market was being run based on supply and demand without any dark pool manipulation.
Ken Griffin Lied FOX BUSINESS
My favorite line is when Charles says, “diamonds are created over a long period of time though a whole lot of heat and a whole lot of pressure, are the apes up for it”.
This is why I’ve grown to really like Charles Payne. He’s using his platform to fight corruption in the markets.
Charles Payne has given apes the mainstream platform we need and I’m glad Trey is the ape in our community to pass the message.
Time To Get Loud
This is the moment we’ve all been waiting for. Will you fight for what’s yours? Share this article with the community, tag our government leaders. It’s time for the MOASS.
Michael Kurlander, the Deputy Global Treasurer of Citadel Securities has resigned after 4 years with the hedge fund. Michael Kurlander is now the CFO for Pagaya, a financial AI tech company.
Citadel has been losing billions of dollars since the rise of retail investors in the AMC and GameStop saga. For this reason the community speculates Citadel securities is a sinking ship.
Michael Kurlander recently posted on LinkedIn, “Closing one chapter and beginning another…”.
Welcome to Franknez.com – the blog where you can digest content on personal finance, stock, crypto, and market news.
Lets get started!
Michael Kurlander career history
From October of 2017 to June of 2021, Michael Kurlander was known as Citadel Securities’ Deputy Global Treasurer. Prior to working with Citadel, he spent 17 years of his life as a managing director at Goldman Sachs.
So what exactly is a deputy global treasurer?
What does a Deputy Global Treasurer do?
According to Zip Recruiter, a Deputy Global Treasurer assists a group of financial advisors related to supervising investments, risks, and financial operations.
As a Deputy Global Treasurer, other obligation include:
Verifying financial risks to investments
Assessing the institutions liquidity
Organizing and approving budgets for financial projects
And ensure the financial health of the institution
What are the qualifications to work as a Global Treasurer?
Obviously you’ll need some sort of education right? A bachelors degree is the entry tier while a masters degree is needed for policy and government positions.
You’ll also need excellent communication skills in order to present financial reports to government officials and community stakeholders.
As the community knows, Citadel securities is under high scrutiny for overleveraging their positions in AMC Entertainment.
Dark pools allow hedge funds to make transactions that aren’t required to be reported. Accurately at least.
As a Deputy Global Treasurer, Michael Kurlander certainly had a lot of lawful and ethical duties to respond to.
Often times people leave a valuable position in a company is due to the lack of ethics and integrity of a company or head.
This is what I’ve noticed from the most successful people I personally know in my life.
Closing one chapter and beginning another
If Michael Kurlander left Citadel for a rapidly growing financial tech company, then it must be for good reason.
I suppose when the head of a company is selling his multi-million dollar properties to keep the business afloat it might be a good indicator it’s time to jump ship.
Citadel continues to amount extreme losses due to the continuous shorting of a stock that is no longer on the brink of extinction. Ego kills dreams.
For more news like this be sure to subscribe to the news letter and give this post a like down below. These quick and short articles will provide evidence related to the communities curiosity on Reddit and Twitter.
And if you haven’t already, connect with me all social platforms for related articles and behind the scenes content. Thanks for reading!
What can be done in order to avoid the collapse of an entire system?
The SEC has taken a stance against high frequency trading and is currently supporting the D-Limit order from IEX.
It’s time for retail investors to speak up and let our government leaders know our needs in the market.
Welcome to Franknez.com – the blog that fights for retail investors and for a fair market. Today’s topic is extremely important so let’s dive right into it.
Let’s get started!
System of Checks and Balances
In the United States, the system of checks and balances provides each branch of government with individual powers to check the other branches and prevent one branch from becoming too powerful.
However, there seems to be a massive concentration of power between market makers Citadel and Virtu in the finance world.
These two market makers are responsible for processing majority of retail investor orders.
This creates massive systemic risks since there is so much power concentrated just within these two key players.
Should one or both fail, the entire system could collapse.
This almost happened in January during the ‘meme stock’ rallies.
Citadel claims they were the only market maker processing orders from Robinhood and this is a big problem.
There needs to be a separation of power.
It’s extremely important that retail investors voice their needs from government leaders regarding this matter.
PFOF Takes More Than It Gives
Citadel, Virtu, and Robinhood continue to stand by payment for order flow.
The issue with PFOF is that it takes more than it actually gives.
Market makers argue that it saves retail investors billions of dollars annually but fail to mention that they also make money from retail through high frequency trading.
In this documentary you will find Citadel makes their money shorting stock.
The Story of Citadel
Retail investors don’t want their orders processed by a company that is a market maker, hedge fund, and dark pool all at the same time.
Not only is Citadel profiting from retail money through high frequency trading, but they are also shorting the stock retail investors are buying through various means.
Dark pool trading and naked short selling are some other ways we’ve seen hedge funds suppress the rise of a stocks share price.
More so in ‘meme stocks’ such as GameStop and AMC, which are heavily shorted.
But there’s another issue that has yet to be addressed and that is OTC, or what’s also known as off-exchange trading.
The Rise of Off-Exchange Trading
Over-the-counter (OTC), or off-exchange trading is when trading occurs between two parties instead of through an exchange, such as the NYSE (New York Stock Exchange).
Market makers essentially negotiate with one another through dealer quotation services such as FINRA’s OTC Bulletin Board.
Yes, that is the same FINRA that is supposed to be protecting retail investors and safeguarding market integrity.
Off exchange trading is not as regulated as the NYSE nor does it require prices to be publicly disclosed.
Market makers can short a stock in these off exchange trading platforms and also create a ‘perfect hedge’, allowing them to offset or eliminate all risk on their position(s).
Retail investors go long on stocks.
So when market makers such as Citadel and Virtu are using tools to make money from shorting stocks, retail investors are at a massive disadvantage.
Market Makers Are A Threat To Our Economy
Market makers pose a serious risk to our economy and the businesses that provide massive value to our society.
As long as this concentration of power isn’t broken, the United States economy will always face systemic risk.
And when the entire country is economically on its knees, financial institutions who shorted on the way down will be the only ones compensated for it.
This is when integrity is buried by greed.
So what’s going to be done about it?
Our community now has a voice.
We must continue to fight against market corruption, and we must fight for a fair market.
Only then will we be able to mitigate systemic risk and make a positive impact in our economy.
Retail Investors Can Grow Our Economy
With more people now learning about the markets more than ever, this could greatly benefit our economy.
Not only does the average person get to invest in the stock market, but we get to support the ideas and innovations of the companies in our country.
People don’t need to make a lot of money to invest.
But fair investing could improve the quality of life for millions of people.
The average person could provide more for their family, the government would collect capital gain taxes, and our businesses would excel much more rapidly.
Our government must look at solutions for economic prosperity and growth.
Market makers such as Citadel and Virtu suppress economic growth for their selfish gain.
They do not contribute to society.
This is why we’re seeing a power like China catch up to the United States with such an intense and exponential growth.
They’ve eliminated a lot of the issues in their markets that we have in ours today.
Institutional investors play a dominant role in the U.S markets, while Chinese markets are dominated by retail investors.
Judges Rao, Walker, and Sentelle, asked tough questions during the first part of this Citadel vs SEC lawsuit hearing.
The hearing took place yesterday, October 25th, 2021 but continues today.
I’m going to be breaking down parts of the hearing and summarizing key points.
I will also be linking the video of the live lawsuit hearing for your viewing pleasure.
Welcome to Franknez.com – the Citadel vs SEC lawsuit hearing has commenced. Be sure to bookmark this page is this developing story unfolds.
Let’s get stared!
The lawsuit hearing started with Judge Walker asking Mr. Wall, Citadel’s lawyer, “Mr. Wall, do you think latency arbitrage exists?”
To which Mr. Wall responded, “[stutters] I don’t think the court has to get into it..”
And this set the entire mood of what was about to go down.
To start off, all three judges were great.
Both Mr. Wall and Catherine Stetson of IEX, were asked very fair questions.
Let’s begin with Citadel’s argument against SEC and IEX technology.
Citadel Argument Against The SEC
In the legality of things, Citadel Securities is suing the SEC for ‘violating’ the Administrative Procedure Act that sets requirements for making changes to agency regulations.
As you know, the changes the SEC made was approving the D-Limit order through the IEX Exchange.
This D-Limit order eliminates market arbitrage and predatory tactics against retail investors by using AI technology to level the share prices of stock throughout all exchanges and offering higher and better quality prices.
Citadel Securities says the SEC disregarded important data showing that the rule would hurt retail investors.
On a side note, Citadel Securities is not for retail investors.
Retail investors do not want their orders going through Citadel nor any association having to do with the market maker.
Citadel Securities is not just a market maker, but a hedge fund and dark pool altogether.
Their predatory tactics against retail investors have suppressed the momentum rallied by the AMC and GME community looking to spark a short squeeze from these heavily and overleveraged stocks.
What Is The Data That Would Hurt Retail Investors?
According to Mr. Wall, the data the SEC missed that would hurt retail investors is that share prices would be higher due to IEX.
He argues that IEX is not sufficiently tailored for retail investors but fails to identify exactly how they miss the mark.
Mr. Wall is suggesting that a leveled playfield would harm retail investors because IEX is able to set better and higher prices than their current model…
It seems Citadel wants to protect retail investors from paying higher and more accurate share prices across all exchanges?
Ladies and gentlemen, this argument is pitiful.
Retail investors have been fighting for a fair market and for a leveled playfield where high frequency trading isn’t affecting their trades and long-term investments.
In simpler terms, IEX would not hurt retail investors but rather lay a foundation towards a more effective and fair market.
It’s this very reason the hashtag #CitadelIsNotForRetail has been trending on Twitter.
I think it’s fair to say that if we took a vote from retail investors, majority would vote for an IEX solution.
IEX Just Wants Liquidity (Bigger Market Share)
Mr. Wall argued that the premise doesn’t even surround latency arbitrage or market arbitrage but rather IEX’s desire for more liquidity, or bigger market share.
When avoiding questions about predatory tactics often used by high frequency trading firms, Mr. Wall deflects confirming the current use of market arbitrage by claiming IEX simply wants to gain liquidity.
In the lawsuit hearing, Mr. Wall confirms Citadel processed up to 56% or retail orders within a month time-frame.
It seems Citadel Securities is more concerned about losing market share than protecting retail.
But that’s not difficult to see.
Citadel Securities has proven to abuse their power and we’ve seen this specifically in AMC and GME stock.
As one of the top short sellers of the two stocks, we’ve seen millions of failure-to-delivers get reported, and the overextension of dark pool trading and even naked shorting occur.
High frequency trading has further given Citadel Securities a massive advantage over retail investors going long on these stocks.
Citadel Securities Argues No Latency Arbitrage Has Taken Place
Mr. Wall mentions that maybe a decade ago latency arbitrage could have been possible but not in today’s world.
This is where we see Catherine Stetson of IEX step in to give her stance in this lawsuit hearing.
“Citadel Pays Hundreds of Millions To Brokers”
Catherine Stetson made a great entrance providing backing information that IEX data has indeed found latency arbitrage.
IEX Exchange is the firm that has introduced innovation to the market with its D-Limit order.
The D-Limit order uses AI technology to execute high quality predictions across the market to set higher and more accurate share prices.
This order type eliminates market arbitrage strategically used by high frequency trading firms such as Citadel Securities and gives retail investors a fair playing field.
When orders are process by Citadel Securities, they are able to move them through several different exchanges, allowing them to profit from slower loading share prices on foreign exchanges.
Orders being process through IEX’s model enables the share prices to load equally amongst all exchanges.
Citadel Securities argues that this model intervenes with the natural laws of the stock market.
The same ones that have allowed them to take advantage of market participants.
Catherine Stetson made a valid point when she said, “Citadel pays hundreds of millions of dollars to get retail orders, and profit from them.”
During the lawsuit hearing, Judge Walker sternly addressed Mr. Wall by saying, “You’re the one who’s trying to regulate your way into market victory.”
It’s not difficult to see the intentions of both parties.
“We Are In The Middle of A Speed-War We Never Signed Up For” – Catherine Stetson
Catherine Stetson made a remarkable statement that addressed the real issue of high frequency trading in the markets.
Her statement regarding retail investors participating in a speed-war we never signed up for sums up the deceit of market maker, hedge fund, and dark pool, Citadel Securities.
This is a statement declaring change in our markets.
This is a statement fighting for a fair market, and a voice aimed towards protecting retail investors.
IEX is seeking to eliminate market arbitrage from high frequency trading firms and begin processing orders that will put retail and financial institutions in the same playfield.
But in short, the market’s share price would reflect more on the actual supply and demand, releasing pressure for growth.
The SEC Is Fighting To Protect Retail
The SEC has been under fire by retail investors primarily due to the lack of regulation within our markets.
However, I think it’s fair to say the SEC is doing a great service by supporting IEX and the D-Limit order that will level the playfield for all participants.
Although the SEC’s discussion in the lawsuit hearing was brief, Emily Parise stood her ground as to why the SEC was not violating the Administrative Procedure Act.
This case continues today and I will be updating you on the second part to the lawsuit hearing here tomorrow.
You can watch the hour debate on YouTube here (starts at 55:00).
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