They're referring to Ken Griffin / Citadel (Securities). Not that it makes their claims any less silly in terms of fundamentally misunderstanding how markets work.
What claim about how the market works is silly exactly and why?
My claim was that 1 person owns the 1 major US market making business AND a hedge fund. Facts: they can control the price (naked shorting + strategic FTDs) and trade on it. Even if they can't/don't control the price, they can still front run the entire market. And even if they don't do that bEcaUsE iT's iLliGaL they legally (not ethically) do it through PFOF from Robin Hood among others.
They do all of that and way more. Just look up the continuous massive FINRA and SEC violations and the (tiny) fines they pay for it.
But I'm sure all is fine and dandy. I find it mind blowing why anybody would defend the biggest crook since Madoff.
You should be happy that market makers like Citadel Securities exist. Payment for order flow is why commission free trading can exist. Citadel Securities, Virtu, Hudson River Trading, Jump Trading etc compete in a negative sum game which reduces the bid ask spread on various assets (i.e. make them cheaper to trade for everyone).
Also lol that a hedge fund with about 1% of total hedge fund assets controls prices. What do you think the other hedge funds and trading firms are doing?
bboygravity|1 year ago
My claim was that 1 person owns the 1 major US market making business AND a hedge fund. Facts: they can control the price (naked shorting + strategic FTDs) and trade on it. Even if they can't/don't control the price, they can still front run the entire market. And even if they don't do that bEcaUsE iT's iLliGaL they legally (not ethically) do it through PFOF from Robin Hood among others.
They do all of that and way more. Just look up the continuous massive FINRA and SEC violations and the (tiny) fines they pay for it.
But I'm sure all is fine and dandy. I find it mind blowing why anybody would defend the biggest crook since Madoff.
next_xibalba|1 year ago
This is the bit that seems poorly substantiated and unlikely. Please elaborate. Anything evidence you can cite would be helpful.
Also, Citadel’s HF has definitely had down years.
mmiyer|1 year ago
Also lol that a hedge fund with about 1% of total hedge fund assets controls prices. What do you think the other hedge funds and trading firms are doing?