Citadel denies requesting ‘meme stock’ buying and selling restrictions

Citadel Securities didn’t ask Robinhood or some other agency to limit or restrict buying and selling on GameStop and different so-called “meme stocks” on the peak of the retail-driven trading frenzy in January, the market-maker stated on Tuesday.

Robinhood and a number of other different brokers restricted buying and selling in GameStop’s shares on Jan. 28 following a stunning two-week rally pushed by retail merchants that sparked a “short squeeze,” resulting in billions of {dollars} in losses for Wall Avenue hedge funds.

“Citadel Securities never requested, intimated, agreed or otherwise sought to limit or to restrict the trading of such securities,” Citadel Securities stated in an announcement to Reuters on Tuesday.

The buying and selling halt pissed off retail traders, capped the losses for hedge funds and drew the scrutiny of lawmakers and regulators. At a US congressional listening to in February, Citadel CEO Ken Griffin, who additionally based Citadel Securities, stated the hedge fund had not contacted Robinhood about proscribing buying and selling.

Robinhood CEO Vlad Tenev had additionally stated then: “We don’t answer to hedge funds.” The net brokerage didn’t instantly remark when contacted by Reuters.

“It must frustrate the conspiracy theorists to no end that Vlad and I have never texted, called or met each other,” Griffin stated.

Commission-free brokerages including Robinhood have been criticized for his or her follow referred to as fee for order movement (PFOF), beneath which they obtain charges from market-makers for routing trades to them and don’t cost customers for particular person trades.

The follow is at the moment beneath investigation by the US Securities and Trade Fee.

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