
US regulator fines Citadel for trading ahead of retail customer orders - cs702
https://www.ft.com/content/dc3f8fb5-62e7-4774-98bb-28db801589ee
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armitron
"Citadel Securities generated $3.5 billion of revenue in 2018."

I bet they are very upset at having to pay a $700000 fine.

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ac29
> As part of the restitution mandated by FINRA, Citadel Securities will
> provide restitution to each corresponding firm client for the customer
> orders that it executed at prices worse than it traded for its own account

Seems like this could potentially be much more than the $700k fine.

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elliekelly
> In particular, FINRA claims that following the establishment of its OTC
> equity trading desk, the firm sought to program the desk’s trading systems
> to comply with the Trading Ahead and Limit Order Display Rules by providing
> customer orders automated order protection, quote display, and execution.

> “The OTC Desk, however, implemented controls, settings and processes that
> removed hundreds of thousands of mostly larger customer orders from those
> logics. While those controls, settings and processes had multiple purposes,
> they shared a principal purpose of directing OTC customer orders for manual
> review and/or handling. Impacted orders were rendered inactive until the
> completion of a manual trader review,” FINRA said in the document earlier
> this month.

How interesting. This is almost certainly a case of the lawyers/compliance
talking to the programmers/ops and everyone thinking they’re on the same page
with how the process needs to work only to find out years later that they
weren’t.

I wonder how this issue was even identified.

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TheJoeMan
Isn't this the company that Robinhood sends the orders to?

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aprao
Non paywall link from another website:
[https://www.financemagnates.com/institutional-
forex/regulati...](https://www.financemagnates.com/institutional-
forex/regulation/citadel-securities-fined-700k-for-breaching-finra-rules/)

~~~
maerF0x0
or [https://archive.is/HbNc1](https://archive.is/HbNc1)

