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Organization

Citadel Securities

Market maker founded in 2002 by Ken Griffin and partners; a separate firm from Citadel.

6 links, 5 backed by primary records

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Dates
2002 –
Over time
  1. Active 2002 –
  2. received customer orders from Robinhood Markets 2019 – Mar 2021
Legal records

In the Matter of Citadel Securities LLC

  1. 13 Jan 2017 Settled with U.S. Securities and Exchange Commission: $22.6M, censured, without admitting or denying the findings 1$5.2 million in disgorgement, more than $1.4 million in interest and a $16 million penalty. The SEC's order finds that two trading algorithms, since discontinued, violated Section 17(a)(2) of the Securities Act from late 2007 through January 2010.

Connections 6

founded by

  • Ken Griffin 2002 co-founder Primary record 2

    Citadel Securities is a market maker; it and Citadel describe themselves as two separate firms.

settled with

  • U.S. Securities and Exchange Commission 13 Jan 2017 $22.6M, censured, without admitting or denying the findings Primary record 1

    $5.2 million in disgorgement, more than $1.4 million in interest and a $16 million penalty. The SEC's order finds that two trading algorithms, since discontinued, violated Section 17(a)(2) of the Securities Act from late 2007 through January 2010.

stakeholders

received customer orders from

  • Robinhood Markets 2019 – Mar 2021 Primary record 34

    Through its subsidiary Robinhood Securities. Citadel Securities paid Robinhood for these orders (payment for order flow): 34% of Robinhood's total revenues in 2020 and 27% in the first quarter of 2021. The S-1 says such arrangements are not documented under binding contracts.

involved in

  • GameStop short squeeze market maker; executed nearly half, by dollar volume, of the GME trades that wholesalers filled in-house in January 2021 Primary record 5

    SEC staff figures, which shorten the name to Citadel: nearly $4.2 billion of GME internalized on 27 January 2021, against just under $37 million a day in December 2020.

not the same as

Timeline 4 dates
  1. 2002 – Citadel Securities
  2. 2002 Ken Griffin founded Citadel Securities
  3. 13 Jan 2017 Citadel Securities settled with U.S. Securities and Exchange Commission
  4. 2019 – Mar 2021 Robinhood Markets routed customer orders to Citadel Securities
Proof 6 sources
  1. Citadel Securities Paying $22 Million for Misleading Clients About Pricing Trades (press release 2017-11), U.S. Securities and Exchange Commission, 13 Jan 2017. Primary record
    Without admitting or denying the findings, Citadel Securities agreed to be censured and pay $5.2 million in disgorgement of ill-gotten gains plus interest of more than $1.4 million and a penalty of $16 million.
    The SEC’s order finds that Citadel Securities, which has since discontinued the two algorithms at issue, violated Section 17(a)(2) of the Securities Act from late 2007 through January 2010.
  2. Testimony of Kenneth C. Griffin before the House Committee on Financial Services, 18 February 2021, House Committee on Financial Services, 18 Feb 2021. Primary record
    In 2002, my partners and I founded Citadel Securities.
    Testimony of Kenneth C. Griffin Founder and CEO of Citadel and Founder and Principal Shareholder of Citadel Securities Before the Committee on Financial Services United States House of Representatives February 18, 2021
  3. Robinhood Markets, Inc. registration statement (Form S-1), 1 July 2021, Robinhood Markets, 1 Jul 2021. Primary record
    We had revenues from market makers in excess of 10% of total revenues, as follows: Year Ended December 31, 2019 2020 Market maker: Citadel Securities, LLC 29 % 34 %
    We had transaction-based revenues from market makers in excess of 10% of total revenues, as follows: Three Months Ended March 31, 2020 2021 Market maker: Citadel Securities, LLC 31 % 27 %
  4. Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide (House hearing of 18 February 2021, Serial No. 117-3), U.S. Government Publishing Office, 2022. Primary record
    Citadel is indeed an important counterparty. It's our largest counterparty in terms of where we route orders to
    The 606 reports do publicly detail the payment for order flow arrangements we have with Citadel Securities and our other market makers.
    Now, Citadel Securities owes a duty of best execution for every order that comes from Robinhood
  5. Staff Report on Equity and Options Market Structure Conditions in Early 2021, U.S. Securities and Exchange Commission (staff), 14 Oct 2021. Primary record
    Citadel Securities accounted for nearly 50% of internalizer dollar volume during the month, rising to as high as 55% of daily internalized dollar volume twice.
  6. Who We Are - Citadel Securities, Citadel Securities. Self-published
    Citadel and Citadel Securities are two separate and distinct financial firms, each focused on a different aspect of today’s markets.
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