Integrated Cannabis Solutions Inc (IGPK)

[BADALI]

July 20, 2020 4:18 pm by Richard Henderson in Melbourne

US regulator fines Citadel Securities over trading breach
Market-maker traded ahead of customer over-the-counter orders over 2-year period

The US financial industry regulator has fined Citadel Securities $700,000 for trading ahead of customer orders, dealing a blow to the market-making firm that has benefited from a big rise in retail trading this year.
Chicago-based Citadel Securities 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, Finra said. The claims relate to “over the counter” equity trades, which are carried out away from public stock exchanges and then reported to regulators.
Over a two-year period until September 2014, the market-maker removed hundreds of thousands of large OTC orders from its automated trading processes, according to Finra. That rendered the orders “inactive” and so they had to be handled manually by human traders.

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, the regulator said.
In February 2014, a sample month reviewed by Finra, the market-maker traded ahead in nearly three-quarters of the inactive orders. “Based on this review, in 559 instances, Citadel Securities traded ahead of 415 inactive OTC customer orders,” the regulator said.
Citadel Securities will pay a fine of $700,000 under the terms of a settlement with the regulator without admitting or denying the claims. The company is also required to make whole any customers affected.
https://www.google.com/amp/s/amp.ft.com/content/dc3f8fb5-62e7-4774-98bb-28db801589ee