Tag: Dave Lauer

Citadel Deems Retail Advocacy Group as Conspiracists

Market News Daily - Citadel Deems Retail Advocacy Group as Conspiracists.
Market News Daily – Citadel Deems Retail Advocacy Group as Conspiracists.

A Citadel spokesperson is deeming retail advocacy group “We The Investors” and founder Dave Lauer as conspiracists.

Many retail investors support the advocacy group, which aims at helping create market transparency for all and encourages regulators to pass proposals that will level the playing field for retail investors.

Nearly 35,000 retail investors have signed a letter to the SEC published by We The Investors requesting improvements to market rules and new disclosures.

The letter is introducing new disclosure in lending transparency, margin transparency, netting transparency, FTD transparency, as well as disclosure of registration, and many other rules that will help level the playing field for retail investors.

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.

“Baseless Conspiracy Theories”

We The Investors has urged the SEC to ban Payment for Order Flow (PFOF), a practice that Dave Lauer considers unethical.

“The system uses individual investors as products. It doesn’t support them,” says Dave.

The Wall Street Journal says that many brokerages, trading firms and academic researchers say individual investors get a good deal in the current system.

They say payment for order flow has benefited investors by allowing brokers to offer zero-commission trading and to execute orders at better prices than those quoted on public stock exchanges.

Many industry veterans say Mr. Lauer’s criticism is misguided, and they criticize him for peddling what they consider baseless conspiracy theories.

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

“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, said Citadel in a 2004 SEC filing.

“David Lauer spent nine months as an analyst at Citadel 14 years ago,” a Citadel spokesperson told the Wall Street Journal.

“While he may consider himself an authority on how the equity market functions, his rhetoric is unsupported by data and often veers into conspiracy.”

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

While pushback from Wall Street is expected, millions of retail investors have educated themselves in the market well enough to understand what is and what isn’t beneficial to their investments.

Payment for order flow and dark pool trading are just two of the tools retail investors want to ban from the market.

Dark pools suppress a stock’s price from rising, slashing true retail demand in the market by 50%-70% or more — will Wall Street argue that dark pools are good for retail investors too?

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.”

Patrick says the rules of the game also heavily favor hedge funds, something retail investors have urged SEC Chairman Gary Gensler for years to change.

“I respect many of my colleagues, the problem isn’t the people, it’s the rules of the game which heavily favor the funds.”

You can read Patrick’s full story here.

Citadel may deem retail investors as conspiracists, but this is just a coping mechanism.

I’d love to know what you think — leave your thoughts below.

Market News Published Daily

Market News Today - Citadel Deems Retail Advocacy Group as Conspiracists.
Market News Today – Citadel Deems Retail Advocacy Group as Conspiracists.

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Will The Apes Successfully Take Down Wall Street Again?

Apes vs wall street
Stock Market News and AMC Updates: Apes VS Wall Street

Retail investors known as ‘apes’ were able to do what no one else in history has ever done before.

They exposed fraud in the stock market and uncovered conflict of interest no one was ever supposed to see.

In the midst of it, a handful of investors made money, causing massive hedge funds to lose billions of dollars.

Do the ‘apes’ have the power to win big again?

And if so, what’s it going to take?

Let’s discuss it.


Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

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Shorts think retail investors are experiencing fatigue

Reuters just published an article giving us some insight to what suits think of the current ‘meme stock’ situation.

They understand that short interest in AMC is rising despite its fundamental improvement.

Shorts seem to have gained some confidence in the bear market – go figure.

Wedbush Securities Inc. says it doesn’t seem like it’s a great time to short AMC.

Bets against the company “reflect that institutional investors think that the retail shareholders are experiencing fatigue here.”

While it’s true buying has cooled down, apes are still very much in this play to squeeze shorts from their positions.

Many investors have gone on the offense for months now and are supporting AMC Entertainment outside the market.

Shareholders have become so loyal to the brand that they’ve become the very guests attending the movie theatres.

Volume might not be on the rise like last year, but movie theatre attendance sure is.

The ape community has grown to understand just how important the fundamentals of the company are, despite a short squeeze not requiring them.

Retail investors might look like they’re on the sideline, but little do shorts know they’ve been on the offense the entire time.

A beacon for change

We the investors
We The Investors – apes sign to ban PFOF

The ‘ape’ community continues to be a beacon for change.

Community members recently gathered on social media to sign a petition going out to the SEC, created by activist Dave Laurer.

We The Investors is an initiative to get retail’s concerns in front of SEC Chairman Gary Gensler in efforts to raise awareness of the problems retail investors face in the market.

The letter to ban PFOF (payment for order flow) received more than 71.5k signatures.

“Together, we’re going to make sure that retail represents itself, & that firms who productize their clients can’t claim to represent them. Together, we’re going to make markets simpler, fairer & more transparent”, says Dave.

Ken Griffin’s Citadel is pushing back on the possibility of the SEC banning PFOF, along with the entire hedge fund industry.

However, other apes are taking a much different approach.

Unlike Dave Lauer, majority of retail investors don’t believe in the SEC.

They’re using marketing campaigns to put pressure on our regulators as seen below.

A mobile billboard truck was spotted in New York reading “The SEC is Complicit with Wall Street Corruption“.

Meanwhile, content creators on social media continue to educate the masses on market injustices.

Institutional investors beware, apes aren’t leaving.

Related: Here's Why Mainstream Media is Attacking AMC

AMC stock prepares for a breakthrough

AMC Entertainment Stock
AMC Entertainment Stock – Will apes trigger a short squeeze?

Buying pressure tends to slow down during bear markets, but this isn’t stopping retail investors from staying in the game.

While the ‘hodl’ game is strong, big buying pressure will soon be underway as the markets begin to shift upwards again.

Momentum from shorts closing will fuel retail’s demand for the stock, inevitably forcing a short squeeze.

And fortunately for AMC shareholders, there are plenty of short sellers in this play to send AMC’s stock price to a new all-time high.

An incredibly important part of history is being written today.

Will you be a part of it?

Leave your answer in the comment section of the blog down below.

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