They delayed certain equity orders from clients to buy or sell shares while continuing to trade the same stocks in its own account as part of its market-making activities, according to FINRA. Ĭitadel Securities was fined $700,000 by FINRA in July 2020, for trading ahead of customer orders. In January 2020, Citadel paid a 670 million-yuan ($97 million) settlement for alleged trading irregularities dating from 2015. In 2018, Bloomberg reported that 40% of Robinhood's revenues were derived from selling customer orders to firms such as Citadel Securities and Two Sigma Securities. In 2018, Citadel was forced by the SEC to pay $3.5 million over violations stemming from incorrect reporting for nearly 80 million trades from 2012 to 2016. In 2017, Citadel was fined $22 million by the SEC for misleading clients regarding the way it priced trades. In 2014, Citadel was fined $800,000 for irregularities in its trading practices between March 18, 2010, and January 8, 2013. Citadel Securities then 'traded for its own account on the same side of the market at prices that would have satisfied the orders,' without immediately filling the inactive orders at the same or better prices as required by FINRA rules. Over a two-year period until September 2014, hundreds of thousands of large OTC orders were removed from its automated trading processes, rendering the orders 'inactive' so that they had to be handled manually by human traders.

The transaction valued Citadel Securities at approximately $22 billion. In January 2022, Citadel Securities announced that venture capital firm Sequoia Capital and cryptocurrency investor Paradigm had made a $1.15 billion investment in the firm. In 2009, Citadel Investment Group and the Chicago Mercantile Exchange partnered to create a credit default swaps electronic-trading platform. In October 2020, Citadel Securities filed a lawsuit against the Securities and Exchange Commission over the SEC's decision to approve a new 'D-Limit' order type for IEX. As of January 2022, the firm oversaw more than 2,000 listed securities. The purchase made it the largest designated market maker (DMM) on the NYSE - overseeing over 1,500 NYSE-listed securities. In October 2020, Citadel Securities announced it would acquire the NYSE market making unit of rival IMC. ĭuring the coronavirus pandemic, Citadel Securities doubled its profit while generating $4 billion in revenue during the first half of 2020 due to an increase in volatility and retail trading. By 2015 Citadel Securities had become the world's largest interest-rate-swap trader by number of transactions replacing Wall Street banks.

In 2014, Citadel Securities expanded its market-making offering to interest rate swaps, one of the most commonly traded derivatives. consolidated volume in equities and 28 percent of U.S. Citadel Securities also executes about 13 percent of U.S. According to the Wall Street Journal, about one-third of stock orders from individual investors is completed through Citadel, which accounts for about 10% of the firm's revenue. Ĭitadel Securities is the largest market maker in options in the U.S., executing about 25 percent of U.S.-listed equity options volume. In 2015, Barron's ranked Citadel Securities #1 in providing price improvement for investors in both S&P 500 and non-S&P shares. Citadel Securities automation has resulted in more reliable trading at lower costs and with tighter spreads. marketsĬitadel Securities was formed in 2002, and is a market maker, providing liquidity and trade execution to retail and institutional clients.

5 Concerns about systemic risk posed to U.S.

Citadel hedge fund