Category Archives: Citadel Securities

Citadel Securities-Numerous Recent Regulatory Sanctions

March 2016

According to FINRA records, Citadel Securities has a number of regulatory sanctions over the recent years, including the following:

  • October 2015 FINRA Sanction- The firm used a trading logic that applied to certain customer orders over 10,000 shares in securities priced below a dollar. The firm adopted the logic in response to perceived market conditions, and utilized the logic only during the review period. The logic unreasonably delayed the execution time of marketable orders. Citadel Securities was censured and fined $200,000.
  • October 2015 Chicago Board Options Exchange-Citadel failed to establish, document and maintain a system of risk management controls and supervisory procedures reasonably designed to manage the financial, regulatory and other risks of their business, and other allegations. Censured and fined $100,000.
  • June 2015- NASDAQ Stock Market-Without admitting or denying the findings, Citadel consented to sanctions and to the entry of findsings that they faile to enter and maintain continuous two sided trading interest within the designated percentages away from the national best bid or offer in securities in which the firm was registered as a market maker. Censured and fined $32,500.
  • March 2015- Chicago Mercantile Exchange-Without admitting or denying the findings, Citadel consented to sanctions and to the entry of findings that it failed to timely report reportable order events. Fined $70,000.
  • October 2014- FINRA- Without admitting or denying the findings, Citadel consented to sanctions and findings of fact that from November 2011-December 2011, Citadel failed to timely report over 20 million reportable order events. Censured and fined $20,000
  • June 2014- NYSE ARCA, Inc. – Various supervisory failures related to processing and cancellation of customer orders and other issues. Censured and fined $160,00

About Citadel Securities

Citadel Securities has been a FINRA member since February 2005, and they are headquartered in Chicago, Illinois. According to company repors, they have offices in Chicago, New York, London, Hong Kond, Toronto, Shanghai, Shenzhen and Sidney. Their website states the following regarding the company:

“Citadel Securities is one of the world’s largest securities dealers.  We are transforming financial markets around the world by consistently providing meaningful liquidity across equities, options, treasuries, currencies, interest rate swaps and other major asset classes.  We empower execution platforms and trading solutions that make markets work better, creating opportunities for investors.”

If you have questions about an account at Citadel Securities, call to speak with an experienced securities attorney.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Citadel Securities Fined $800,000 by Securities Reguators

UPDATE MARCH 2017Citadel Securities has numerous recent regulatory sanctions see this for more. 

July 2014

CItadel Securities was censured and fined $800,000 by securities regulators ( NASDAQ, NYSE, BATs Exchange, BATs Y-Exchange and FINRA) and required to revise its written supervisory procedures and risk management controls.

Without admitting or denying the allegations, Citadel consented to entry of findings that it failed to reasonably prevent the transmission of erroneous orders to NASDAQ, BZY, BYZ and NYSE Arca.  The findings stated that the firm failed to prevent the transmission of erroneous customer orders to the exchanges which affected the price of each security.

The findings also stated that the equity making desk of the firm erroneously sold short, on a proprietary basis 2.75 million shares of a stock, causing the price of that stock to drop 77% in just 11 minutes.

About Citadel Securities

Citadel Securities has been a FINRA member since February 2005, and they are headquartered in Chicago, Illinois. According to company repors, they have offices in Chicago, New York, London, Hong Kond, Toronto, Shanghai, Shenzhen and Sidney. Their website states the following regarding the company:

“Citadel Securities is one of the world’s largest securities dealers.  We are transforming financial markets around the world by consistently providing meaningful liquidity across equities, options, treasuries, currencies, interest rate swaps and other major asset classes.  We empower execution platforms and trading solutions that make markets work better, creating opportunities for investors.”

If you have questions about an account at Citadel Securities, call to speak with an experienced securities attorney.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870