Category Archives: Short Sales

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.

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