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.
(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.”
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 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
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 – 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.
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.
Market News Daily: Ex-Citadel employee Patrick McConlogue says the market is rigged.
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.”
Not many investors know this, but Patrick actually breaks down how Citadel and other hedge funds were able to make billions back in only weeks from halts.
In this article, I’m going to share his words and knowledge in the industry directly with you.
Share this article to raise awareness of the market injustices ‘experts’ have claimed were never true.
Your voice matters.
Let’s get started.
Ex-Citadel Employee Reveals Rigged Trading Game
Ex-Citadel employee Patrick McConlogue says the market is rigged.
Patrick McConlogue appeared on Fox Business during the ‘meme stock’ frenzy of 2021 when retail investors created one of the biggest scares in Wall Street history.
GameStop and AMC shareholders were able to create panic on Wall Street by heavily buying shares of the overleveraged shorted stocks.
As share prices soared, short sellers experienced massive losses.
GameStop was able to put Melvin Capital out of business, but Patrick McConlogue says other hedge funds were able to make back billions in losses during the halt.
The halts allowed hedge funds to enter AMC and GameStop knowing shares would plummet, allowing them to capitalize on the deflation of the price.
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.”
Below is ex-Citadel Data Scientist Patrick McConlogue’s story.
Patrick McConlogue Says the Stock Market is Rigged
Ex-Citadel employee Patrick McConlogue says the market is rigged.
“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.
A few years ago, I worked at the massive hedge fund Citadel. The multi-billion dollar fund was caught up in this week’s scandal for bailing out hedge fund Melvin Capital after everyday traders on Robinhood appeared close to liquidating the fund through mass buying of the GameStop stock $GME.
My role at Citadel was as an engineer in Long Term Quantitative Strategies. The entire department, filled with programmers and compliance officers, is dedicated to something called ‘alpha’ which determines the buying strategy of the fund.
I was responsible for innovative proprietary technology that capitalizes on public data faster than any other hedge fund. It’s a classic situation of machines against humans. I respect many of my colleagues, the problem isn’t the people, it’s the rules of the game which heavily favor the funds.
A group of traders on the r/WallStreetBets Reddit thread, now consisting of over 8.6M members, noticed that someone had overly “shorted” the GameStop $GME stock.
They decided it was the perfect time to buy. It was only around $18 per share and easily affordable for the common investor who kept buying, driving up the price of the stock.
As the buying frenzy continued the hedge funds who had taken the opposite position started to hemorrhage money.. BIG money.
The small investors celebrated their success online as news broke that the hedge fund Melvin Capital Management had lost so much on the $GME short position that they had to be bailed out by bigger hedge funds.
While the markets were closed Melvin Capital’s sinking battleship received an emergency infusion of $2.75 billion from Citadel and Point72.”
‘Meme Stock’ Halts
Ex-Citadel employee Patrick McConlogue says the market is rigged.
“On Thursday morning, Robinhood — the commission-free stock trading app used by small investors — suddenly shut down buys on $GME and a few other stocks that were under siege.
Only sell orders went through, reversing the trend, driving the stock prices back down and shoring up the hedge funds’ sinking ships. Remember, when the stock price goes down, the people who hold the “shorts” make money.
This started a chain reaction. Other retail trading platforms like E*Trade and TD AmeriTrade began freezing the stock for individual investors. But hedge funds own supercomputers.
They have direct access to stock markets. While small investors were frozen the hedge funds traded massive positions and quickly earned back the billions in losses from the past few days.
The rules of the game had been exposed, in broad daylight no less.
Robinhood users, when signing up for the popular trading app that offered “free trading” were likely unaware of their role in the hedge funds’ ability to reap huge profits.
The system is broken.”
Patrick McConlogue left Citadel for decentralized finance and co-founded a new technology called Overline that takes the philosophy of DeFi to the extreme.
Not only is Overline unable to freeze any of your assets but it can’t even turn off the exchange; it’s not possible.
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.
Citadel pushed back on the possibility of a payment for order flow (PFOF) ban in June of 2022.
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.
“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’.
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.”
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.
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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.
Market News Published Daily
Market News Today: Citadel Securities gets fined $9 million by Korea’s financial regulators.
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Market News: DOJ Offers 75% Reduction in Fines to Companies that Admit Crime.
[Bloomberg] The Justice Department will recommend as much as a 75% reduction in fines for companies that voluntarily report wrongdoing to the government and fully cooperate with investigations.
Even companies that don’t voluntarily disclose wrongdoing but still fully cooperate with investigations could still get a 50% reduction off the low end of the guidelines for fines, the head of the department’s criminal division said Tuesday.
“The policy is sending an undeniable message: come forward, cooperate, and remediate,” Assistant Attorney General Kenneth Polite said in a speech at Georgetown University Law Center.
Polite made it clear that cooperators seeking declination will be held to a higher standard than your average or even gold-standard cooperator — the cooperation must be “truly extraordinary.”
The Justice Department will distinguish extraordinary cooperation by assessing the immediacy, consistency, degree, and impact of the cooperation.
Prosecutors will expect companies to cooperate immediately, consistently tell the truth, and hand over evidence that the DOJ otherwise would not be likely to obtain, such as quick access to electronic device images, audio/video recordings, trial testimony, and other kinds of cooperation that “produces results.”
The policy also covers corporations conducting business internationally, as the changes will apply to all corporate matters handled by the Criminal Division, including all Foreign Corrupt Practices Act (FCPA) cases nationwide.
Notably, the new policy is the third in a trilogy of Department of Justice memoranda addressing the prosecution of corporate misconduct and setting forth revised policies concerning the effect of cooperation by companies that have engaged in wrongdoing.
Years of Ongoing Investigations
The new policy was announced to further Deputy Attorney General Lisa Monaco’s October 2021 memorandum directing the creation of a Corporate Crime Advisory Group within the Department to recommend guidance concerning, in part, the nature of a company’s dealings with the government required to receive cooperation credit in resolving company misconduct, and to consider revisions and reforms to the Department’s approach to corporate crime prosecution.
The new policy also follows less than five months after the issuance of a memorandum further clarifying the Department of Justice’s policy against seeking a guilty plea where a corporation has voluntarily self-disclosed, fully cooperated, and timely and properly remediated the conduct at issue in the absence of aggravating factors and directing all department components, including the 93 U.S. Attorney’s Offices across the country, to review its policies on corporate voluntary self-disclosure and ensure it has a publicly available written policy.
At the same time, the September 2022 memorandum emphasized DOJ’s commitment to “strong corporate criminal enforcement.”
Polite likely had these pronouncements in mind as he concluded his speech. He entreated corporations to “come forward, cooperate, and remediate,” and to join the Department of Justice as allies in the fight against crime.12 But he also warned: “Failing to take these steps, a company runs the risk of increasing its criminal exposure and monetary penalties.”
[Bloomberg] Billionaire hedge fund manager Ken Griffin sued the US Internal Revenue Service, claiming it failed to protect his confidential financial information.
The Citadel founder is seeking financial damages over a data breach that resulted in ProPublica’s publication of information on a number of the wealthiest people in the US. He accused the IRS of “willful and intentional failure to establish appropriate administrative, technical, and/or physical safeguards.”
The lawsuit, filed Tuesday in federal court in Florida, also names as a defendant the US Treasury Department, which includes the IRS.
The IRS didn’t respond to a request for comment on the suit, per Bloomberg reports.
“IRS employees deliberately stole the confidential tax returns of several hundred successful American business leaders,” Griffin said in a statement in response to a request for comment.
“It is unacceptable that government officials have failed to thoroughly investigate this unlawful theft of confidential and personal information. Americans expect our government to uphold the laws of our nation when it comes to our private and personal information — whether it be tax returns or health care records.”
Market News: Ken Griffin sues IRS | Ken Griffin Net Worth Update – Bloomberg, Franknez.com.
Republicans, who won control of the House of Representatives in last month’s election, have pledged to use their newfound power to investigate the breach and the IRS response.
Government officials who have expressed concern about the leak include Treasury Secretary Janet Yellen, who referred to it as “criminal activity” and vowed to work with federal investigators to find the source.
The ProPublica report said billionaires including Jeff Bezos and Elon Musk had in some years paid minimal or no income tax even as their fortunes soared.
It outlined the tax strategies available to the top 0.1%.
Ken Griffin reported an average annual income of almost $1.7 billion between 2013 and 2018 and paid an average federal tax rate of 29.2% during that time, ProPublica reported.
In his lawsuit, Griffin says he requested that the IRS and Treasury demand ProPublica return or destroy confidential IRS data and provide him with information about the disclosure of his tax data, and hasn’t seen “any meaningful response.”
He asked the court to order the defendants to produce documents related to the disclosure of his tax information, as well as for the monetary damages.
Market News: Here’s how Bloomberg’s beloved Citadel Securities manipulates the stock market.
Citadel Securities is a leading financial institution known for its expertise in electronic trading and market making.
However, the company has also been embroiled in controversy surrounding allegations of manipulation in the markets.
In this article, we will explore the history of Citadel Securities and the accusations of market manipulation that have been levied against the company.
We will also examine the potential consequences of such behavior, both for Citadel Securities and for the broader financial industry.
How Does Citadel Securities Manipulate the Stock Market?
How does Citadel Securities manipulate the stock market?
Citadel LLC was founded in 1990 while Citadel Securities was founded in 2002 by Ken Griffin.
Citadel Securities is a leading global market maker that provides liquidity to financial markets.
The company is known for its use of advanced technology and quantitative strategies to facilitate price discovery and drive market efficiency.
However, Citadel Securities has also been accused of manipulating financial markets in order to gain an unfair advantage.
Here are 5 ways Citadel Securities manipulates the stock market.
#1. High Frequency Trading (HFT)
One example of Citadel Securities’ alleged market manipulation is its use of high-frequency trading (HFT) algorithms.
HFT algorithms are designed to execute trades at extremely high speeds, often in fractions of a second.
This allows Citadel Securities to react to market movements faster than other traders and potentially gain an unfair advantage.
Critics argue that the use of HFT algorithms allows Citadel Securities to manipulate prices by quickly buying or selling large volumes of securities, which can create artificial demand or supply and move prices in their favor.
#2. Dark Pools
Another area where Citadel Securities has faced accusations of manipulation is in the realm of dark pools.
Dark pools are private stock exchanges that allow traders to buy and sell securities without revealing their identities or the details of their trades.
This can create a lack of transparency, making it difficult for regulators to monitor market activity and prevent manipulation.
Citadel Securities operates a number of dark pools and has been accused of using these platforms to engage in insider trading and other forms of market manipulation.
In addition to its use of HFT algorithms and dark pools, Citadel Securities has also been criticized for its role in the flash crash of 2010.
On May 6, 2010, the Dow Jones Industrial Average plunged nearly 1,000 points in a matter of minutes, before quickly recovering.
The cause of the flash crash was traced to a large sell order that was executed by Citadel Securities, which many believe was done intentionally to trigger a market panic.
Critics argue that Citadel Securities exploited the vulnerabilities of the market in order to profit from the flash crash.
#3. Spoofing
Another tactic that Citadel has been accused of using is spoofing, which involves placing a large number of fake orders in the market with the intention of tricking other traders into thinking there is more demand or supply than there actually is.
This can cause prices to move in the desired direction, allowing Citadel to profit from the manipulation.
In 2015, Citadel was one of several firms that were fined by the U.S. Commodity Futures Trading Commission for engaging in spoofing.
In December of 2022, a Biotech company researching cancer has decided to sue Citadel Securities for spoofing their stock.
#4. “Front Running”
Citadel has also been accused of engaging in “front-running” – a practice in which traders use inside information to gain an unfair advantage in the market.
In 2013, the company was sued by the New York Attorney General for front-running, but the case was later settled out of court.
Despite these controversies, Citadel remains a major player in the financial world.
Its use of algorithms and high-frequency trading has made it incredibly successful, but it has also raised concerns about the potential for market manipulation.
One of the key reasons for Citadel’s success is its ability to manipulate the markets to its advantage.
This is done through a variety of strategies, including high-frequency trading, where the firm uses powerful computer algorithms to make trades at incredibly fast speeds.
This allows Citadel to take advantage of even the slightest market movements and make a profit.
Another way in which Citadel manipulates the markets is through the use of complex financial instruments known as derivatives.
These are financial contracts that derive their value from an underlying asset, such as a stock or a bond.
Citadel uses derivatives to speculate on the future value of these assets, and to hedge against potential losses.
This allows the firm to make huge profits even in volatile market conditions.
Despite its impressive track record and reputation, Citadel Securities has faced allegations of manipulation in recent years.
In particular, the company has been accused of using its dominant market position to manipulate prices and engage in other forms of misconduct.
These allegations have led to significant scrutiny from regulators, authorities, but primarily by retail investors who are concerned about the impact of such practices on the integrity of financial markets.
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Market News: Ken Griffin’s Ties with News Corp leads to conflicts of interest.
Ken Griffin is a well-known billionaire hedge fund manager and the founder of Citadel LLC, one of the largest and most successful hedge funds in the world.
In recent years, Griffin has been involved in a conflict of interest with media conglomerate News Corp, specifically with regard to his relationship with the company’s CEO, Rupert Murdoch.
The conflict began in 2017, when Griffin became a member of the board of directors for News Corp, despite having a significant financial stake in the company through his hedge fund.
This raised concerns among some that Griffin’s position on the board could be used to further his own financial interests, rather than those of the company and its shareholders.
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What is News Corp?
News Corp is a global media and entertainment company that is known for its diverse portfolio of news and information services.
The company was founded by media mogul Rupert Murdoch in 1979 and has since grown to become a major player in the media industry.
News Corp operates a number of well-known brands, including the Wall Street Journal, the New York Post, the Times of London, Dow Jones Newswire, MarketWatch, and Barron’s.
In addition to its news and information services, the company also owns a number of entertainment properties, such as Fox News, Fox Sports, and the 20th Century Fox film studio.
Despite its success, News Corp has faced a number of challenges in recent years.
The company has been criticized for its political leanings and its coverage of certain events and has faced allegations of unethical behavior and corporate misconduct.
However, News Corp has continued to invest in its brands and expand its operations, positioning itself as a major player in the global media industry.
Conflicts of Interest with The Media
In addition to his wife serving on the board, Ken Griffin has also been a vocal supporter of Murdoch and his leadership of News Corp.
In 2018, he publicly praised Murdoch’s “exceptional leadership” and defended the company against criticism from other investors.
This support has led some to question whether Griffin’s actions on the board are influenced by his personal relationship with Murdoch, rather than a genuine desire to act in the best interests of the company.
Furthermore, there have been reports that Griffin has used his position on the board to push for changes at News Corp that would benefit his own financial interests.
The conflict of interest between Griffin’s now ex-wife and News Corp has raised concerns among some investors and corporate governance experts.
They argue that Griffin’s (dual role) as a board member (ex-wife) and significant shareholder creates a clear conflict of interest, and that actions on the board may not be in the best interests of the company and its shareholders.
One potential solution to this problem would be for Griffin to divest his stake in News Corp and for his now ex-wife to resign from the board.
This would eliminate the potential for conflicts of interest and ensure that Griffin’s actions are aligned with the interests of the company and its shareholders.
The conflict of interest between Ken Griffin and News Corp is a serious concern that raises questions about the integrity of the company’s leadership and governance.
The Latest on News Corp.
Charles Gasparino Fox News.
News Corp is a global media conglomerate that owns a wide range of news and entertainment companies, including Fox News, the Wall Street Journal, and the New York Post.
Despite its vast reach, News Corp has faced criticism for conflicts of interest that arise from its ownership of both news outlets and the companies and individuals they report on.
An example of a News Corp conflict of interest is its ownership of the Wall Street Journal, which has been criticized for its close ties to the financial industry.
This has led to accusations that the Journal’s coverage of the financial sector is biased in favor of Wall Street interests.
Furthermore, News Corp’s ownership of the New York Post has also been criticized for its lack of journalistic integrity.
The Post has been known to publish sensational headlines and stories that are often lacking in factual accuracy.
Overall, News Corp’s conflicts of interest have raised concerns about the company’s ability to provide objective and unbiased news coverage.
This is particularly important in today’s media landscape, where trust in the media is already low and the line between news and entertainment is increasingly blurred.
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The one that started it all. One man stood against many then his followers joined in.. the rest is history..