(BLOOMBERG) Citadel Securities bought the unit of Morgan Stanley that’s focused on electronic market-making for US equity options, a move that further cements the firm’s dominant role in the popular derivatives. The deal will likely bolster Citadel Securities as an options market maker, filling orders both electronically and on trading floors. Similar to a designated market maker for stocks, a specialist in options is approved by an exchange and required to quote buy and sell prices beyond the normal requirements of a registered market maker. Morgan Stanley was the last major bank in the market-making business, which is now dominated by high-frequency trading firms. Citadel Securities, founded by billionaire Ken Griffin, acquired Morgan Stanley’s on-exchange options business and took on a large portfolio of equity options positions. The deal includes specialist posts on venues including Cboe, Nasdaq, NYSE and MIAX. —David E. Rovella
It's cool to be Citadel... You can commit all sorts of National US Financial Crimes in the US and when you are bored you can commit International Financial Crimes... """"Information from online sources indicates that Citadel Securities has paid over $100 million in fines and settlements for various market misconduct and reporting violations.""" The List: Citadel Breaks Global Financial Laws and smiles all the way to the bank: In 2007, Citadel Securities was fined $22,500 by FINRA for failing to properly report short interest positions. In 2009, Citadel Securities was fined $3 million by the SEC for allegedly engaging in improper trading practices that artificially impacted the price of securities. In 2014, the US Securities and Exchange Commission (SEC) fined Citadel Securities $800,000 for allegedly violating the market access rule, which requires firms to have adequate risk controls and supervisory procedures in place when providing direct market access to customers. and more on Reddit... See a list of 25 More Citadel's fines for Financial Crimes"
Financial crimes? LMAO. In the world of market making and given the scope and breadth of their overall business, these "violations" are tantamount to failing to feed the parking meter.
I wonder how their fills will be because on Robinhood their stock executions were horrible on wide spread stocks. Regarding options the companies like Fidelity and Schwab would fill tight. Citadel is not known for great fills on market orders.
Well all free (option) brokers are PFOF. I've found that fill time on limits is terrible at PFOF shops.
I'm surprised a bank held on this long. Thought they had better ways to allocate. Automated MM needs to be nimble