Mr. Martens' career spanned four decades in printing and publishing management. This is known as payment-for-order-flow and it’s probably not a comforting thought that this is what Bernie Madoff’s broker-dealer was doing while Bernie was running the largest Ponzi scheme in history. That’s $12.35 billion per client. People familiar with the fund said it lost almost 30% in … They asked about whether the extreme … That’s the CEO of the online trading app known as Robinhood that has played a role in the controversy surrounding the bull raid (now turned bear raid) in the shares of GameStop. Citadel is one of several market-makers Robinhood uses. His character was played by Christian Bale in the movie, The Big Short. That’s the CEO of the online trading app known as Robinhood that has played a role in the controversy surrounding the bull raid (now turned bear raid) in the shares of GameStop. Did the FBI Raid Rudy Giuliani To Get Pelosi’s Laptop? Another unit of Citadel, Citadel Advisors LLC, had a net short position in GameStop and held options that could potentially benefit from the stock whipsawing up and down. Did Archegos, Like Renaissance Hedge Fund, Avoid Billions in U.S. Tax Payments through a Scheme with the Banks? Its Form ADV which was filed on January 15 of this year, shows that it has just 19 clients for which it manages a total of $234,679,962,503. WallStreetOnParade.com is a financial news website operated by Russ and Pam Martens to help the investing public better understand systemic corruption on Wall Street. The unflappable Katie Porter and her Harvard Law degree should do the grilling of Griffin. The 606 form shows that in just the month of December 2020, Citadel Execution Services paid Robinhood $28 million for directing its option trades to Citadel. Here’s the Ugly Math. Now we have just learned that Citadel Advisors LLC (one of the sprawling tentacles of Citadel) had a large net short position in GameStop but also stood to make money as the stock whipsawed up and down. One major hedge fund, Melvin Capital Management, held a significant short position in GameStop and scrambled to close their position as the price rallied. Burry is one of the guys that bet big against subprime debt in the leadup to the 2008 Wall Street crash. The company filed a 13F with the SEC for the third quarter of 2020 that listed the following position in GameStop: 4.44 million shares owned outright; puts on 2.8 million shares; calls  on 697,700 shares; giving it a net long (bullish) stance on GameStop. And, it gets to see all of that before it executes the trades, raising speculation that it might be tempted to front-run these trades for its own account. Here’s Why. People familiar with the fund said it … If that’s to be the only witness, you might as well call Ken Griffin’s personal shopper to testify. Citadel CEO Ken Griffin said of short-selling reforms that as far as legislative priorities that could improve the markets go, "this doesn't make the top 100 list." Fed Chair Jerome Powell Goes on 60 Minutes to Present a False Narrative on Mega Banks He Supervises Loaning Out their Balance Sheets to Hedge Funds, Senate Banking Chair Sherrod Brown Sends Letters to Wall Street Banks on the Archegos Blowup and Opens a Big Can of Worms, Including Antitrust Issues. A buying spree from retail investors forced Melvin to cover its short position by buying shares of GameStop at elevated prices. It has offices in London, Hong Kong, Edinburgh, U.K. and numerous cities in the U.S. including Chicago, New York City and Greenwich, Connecticut (the town that hedge fund titans call home). GameStop stock price compared to Short Interest Rick Miller, Sensible Financial, YCharts data 1) Some investors (short sellers) disagreed that GameStop’s competitive position had … by Pam Martens and Russ Martens, Wall St On Parade: Politico reported yesterday that the House Financial Services Committee plans to call Vlad Tenev to testify on February 18. Senate Banking Committee Sets GameStop Hearing for Tuesday; Koch Money Pops Up Again, The Tech Wreck of Zero-Dividend Stocks Arrives on the Wings of Rising Treasury Yields, Senator Ossoff Drops a Bombshell: “The 12 or 13 Largest Banks” Got the Trillions from the Fed’s Repo Loans Last Year. Margin Debt Has Exploded by 49 Percent in One Year to $814 Billion. The unflappable Katie Porter and her Harvard Law degree should do the grilling of Griffin. Earlier this week prominent hedge funds Citadel and Point72 Asset Management extended a $2.75 billion financial lifeline to the fund. That unit of Citadel can see both the direction and the dollar volume of money heading to push a stock up or down. Citadel is invested heavily in Melvin Capital, a hedge fund that was reportedly on the brink of bankruptcy this week due to a surge in GameStop share prices. A Third of All Recent ‘Covid Deaths’ in England and Wales Not Caused by Coronavirus, $80 Billion For IRS Hiring Spree, “Enhanced” IRS Audits Seek To Extract Trillions From Americans. Here’s Why. Welcome to the most lop-sided playing field in the history of markets. [WASHINGTON] Robinhood Markets and Citadel, central players in the GameStop saga that riveted markets last month, plan to deliver a unified message to US lawmakers Thursday: conspiracies swirling in Washington that they worked together to … The first question for the House Financial Services Committee is exactly what was the motivation for Griffin to prop up a competing hedge fund. Politico reported yesterday that the House Financial Services Committee plans to call Vlad Tenev to testify on February 18. Citadel’s hedge fund also invested $2 billion in Melvin Capital to keep the hedge fund from going belly up over its losses from its short position in GameStop. For its hedge fund, “Citadel is not involved in, or responsible for, any retail brokers’ decision to stop … Robinhood’s $3 bn deficit The unprecedented spike in trading in GameStop, AMC Entertainment, BlackBerry and a number of other securities prompted discussion yesterday of reform to clearinghouse rules that govern how long a transaction takes to clear. That’s Gabe Plotkin of Melvin Capital, a former trader at Steve Cohen’s SAC Capital. SGT Report is your daily source for truth in a time of universal deceit. Donald Foss, a Michigan billionaire who founded subprime auto lender, Credit Acceptance Corp, also held a large stake in GameStop. As Melvin Capital, a major short seller in the shares of GameStop was about to collapse as the stock soared, Griffin and Citadel’s hedge fund rode to the rescue, injecting $2 billion in cash into Melvin to save its hide. Griffin is the billionaire founder, CEO and majority owner of Citadel, which has been operating in the GameStop saga like a maestro from an orchestra pit. According to Robinhood’s 606 form that it filed with the SEC for the final quarter of last year, Citadel Execution Services paid it tens of millions of dollars a quarter for the privilege of executing its stock and option trades. “Citadel Securities has not instructed or otherwise caused any brokerage firm to stop, suspend, or limit trading or otherwise refuse to do business,” the company said in a statement. (In 2013 four of SAC Capital’s businesses pled guilty to a sprawling insider trading case brought by the U.S. Department of Justice and paid $1.8 billion in fines and restitution.). Nothing else is/was even close to as shorted (100+% of float), so small (microcap), and so hated/ignored/dismissed prior to the #thebigshortsqueeze.”. Then there is the fact that as all of those millennials and Gen-Zers at Reddit’s WallStreetBets message board were strategizing on their bull raid against the short sellers, Griffin’s Citadel Execution Services had a telescopic view of what was happening because Citadel Execution Services executes a big chunk of both stock and option trades for Robinhood. Melvin Capital closed out its short position in GameStop on Tuesday afternoon after taking a huge loss, the hedge fund’s manager told CNBC. According to Citadel Advisors LLC’s most recent 13F form filed with the SEC for the quarter ending September 30, 2020, it owned puts on 2.5 million shares of GameStop (which are option bets that the stock price will decline); it owned calls on 2 million shares of GameStop (option bets that the price will rise); and it owned 111,805 shares outright of GameStop. (Feb 18): Robinhood Markets and Citadel, central players in the GameStop Corp saga that riveted markets last month, plan to deliver a unified message to US lawmakers Thursday: conspiracies swirling in Washington that they worked together to harm retail investors are categorically false.Robinhood Chief Executive Officer Vlad Tenev, whose firm has faced a barrage of questions into … Unfortunately, the 13F does not provide the strike prices or expiration dates of the puts and calls. As of February 2020, Foss owned 3.5 million shares of GameStop, representing at that time approximately 5.3 percent of the company. As Melvin Capital, a major short seller in the shares of GameStop was about to collapse as the stock soared, Griffin and Citadel’s hedge fund rode to the rescue, injecting $2 billion in cash into Melvin to save its hide. Florian Grummes: Where is Gold Headed? Now we have just learned that Citadel Advisors LLC (one of the sprawling tentacles of Citadel) had a large net short position in GameStop but also stood to make money as the stock whipsawed up and down. Wall Street On Parade ® is registered in the U.S. Patent and Trademark Office. CTRL + SPACE for auto-complete. As r/wallstreetbets begins manipulating GameStop, Citadel is front-running them based on the PFOF it buys from Robinhood. Politico reported yesterday that the House Financial Services Committee plans to call Vlad Tenev to testify on February 18. Another indispensable voice on the panel of witnesses is Michael Burry, who owned 2.8 million shares of GameStop through his company, Scion Asset Management. (For our previous profile of Griffin and Citadel, see here.). The Fed’s Ongoing Emergency Loan Operations to Wall Street’s Trading Firms Began on September 17, 2019 – Months Before the Coronavirus COVID-19 Had Emerged in China or Anywhere Else in the World. SGT Report is the corporate propaganda antidote. So let’s get this straight: Citadel Execution Services is allowed by the SEC to pay for order flow so that it can trade against the dumb money coming in from Robinhood while another tentacle of Citadel is managing money for 19 clients who can cough up $12.35 billion each. Members of the House Financial Services Committee questioned a panel of six witnesses appearing remotely. (That information is missing on all 13F forms and the SEC needs to include that information in the interest of transparency.). Its Form ADV which was filed on January 15 of this year, shows that it has just 19 clients for which it manages a total of $234,679,962,503. Michael Burry, the hedge fund investor who built a massive position in GameStop before it became a meme stock on Reddit and skyrocketed, sold his … That Strongly Suggests to Us that Wall Street Banks Had a Serious Problem Independent of the Virus Outbreak. “Citadel is going to know what the buy-sell balance is, and when it reaches a point of equilibrium, Citadel will shift short and we will see a mean reversion for … Will Senator Toomey Engage in Koch-Speak at Today’s Senate Confirmation Hearing? The Kochtopus Is Betting Billions in the Stock Market: Is There a Case for Systemic Risk? (For our previous profile of Griffin and Citadel, see here.). It’s also quite interesting that while Citadel is headquartered in Chicago, the capital of options and futures trading, the tentacles of Citadel Advisors LLC spread to three continents. If that’s to be the only witness, you might as well call Ken Griffin’s personal shopper to testify. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME).Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", purchased around $53,000 in call options on GameStop's stock in 2019 and saw his position rise to a value of $48 million by January 27, 2021. More than a Year Later, Americans Have No Idea Where $9 Trillion of Fed Money Went, Wall Street Sends a Message to the Fed: We Have Run Out of Places to Stuff Your Treasuries. Meanwhile, another hedge fund, Melvin Capital, was one of the funds caught in the GameStop short squeeze. GameStop Corporation (NYSE: GME) short seller Melvin Capital Management LP said Monday it had received $2.75 billion in investment from hedge funds Citadel and Point72. According to Reuters , sources close to the fund said it lost more than 30% and got a $2.75B lifeline from Ken Griffin’s Citadel and Steven Cohen’s Point72. Citadel Didn’t Just Bail Out a GameStop Short Seller; Citadel Also Had a Big Short Position in GameStop. Mainstream Media Refused to Cover this Story in any Depth, Leaving the Heavy Lifting to Wall Street On Parade, Which Has Since that Time Written More than Ten Dozen Articles Chronicling this Fed Bailout. Archegos: Wall Street Was Effectively Giving 85 Percent Margin Loans on Concentrated Stock Positions – Thwarting the Fed’s Reg T and Its Own Margin Rules. That’s $12.35 billion per client. Then there is Ryan Cohen of RC Ventures that ramped up its purchases of GameStop to 9 million shares as of January 10 of this year; Richard Mashaal’s Senvest Management which showed ownership of 3.6 million shares of GameStop at the end of the third quarter of 2020; and John Broderick’s Permit Capital and Kurt Wolf’s Hestia Capital, that held big stakes in GameStop and frequently acted together in advocating change at GameStop. In addition to ferreting out whether there was any coordinated actions among the big players in GameStock (both long and short) the House Financial Services Committee needs to find out how such a high percentage of GameStop’s shares were in the hands of sophisticated investors and yet 140 percent of its outstanding shares were reportedly shorted. One of the Tweets by Burry stated this, according to Business Insider: “There really can’t be another GME [stock symbol for GameStop]. Citadel, its partners and Point72 took losses from their investment in the hedge fund. Even then, Rep. Vicente Gonzalez (D-TX) pointed out that in 2020, Citadel violated the Security Commission’s Reg Write CSS OR LESS and hit save. Severe Dysfunction in Washington and Wall Street Puts the U.S. at Risk of Capital Flight, Citadel Didn’t Just Bail Out a GameStop Short Seller; Citadel Also Had a Big Short Position in GameStop, Form ADV which was filed on January 15 of this year, pled guilty to a sprawling insider trading case, Dow Jones Industrial Average Intraday Trading Levels and Breaking Market News, After Mega Banks Supervised by the Fed Lose Over $10 Billion to a Highly Leveraged Hedge Fund, Fed Puts Lipstick on a Pig in its Financial Stability Report, Gensler May Force Banks to Disclose Actual Owners of Stocks Under Archegos-Styled, Tricked-Up Derivative Contracts, Shhh! According to Citadel Advisors LLC’s most recent 13F form filed with the SEC for the quarter ending September 30, 2020, it owned puts on 2.5 million shares of GameStop (which are option bets that the stock price will decline); it owned calls on 2 million shares of GameStop (option bets that the price will rise); and it owned 111,805 shares outright of GameStop. Then there is billionaire Jeffrey Yass, a founder and now Managing Director at the stealthy Susquehanna International Group (SIG). The 606 form shows that in just the month of December 2020, Citadel Execution Services paid Robinhood $28 million for directing its option trades to Citadel. It has offices in London, Hong Kong, Edinburgh, U.K. and numerous cities in the U.S. including Chicago, New York City and Greenwich, Connecticut (the town that hedge fund titans call home). Griffin is the billionaire founder, CEO and majority owner of Citadel, which has been operating in the GameStop saga like a maestro from an orchestra pit. Is the Bull Market Still Intact? Citadel made a $2 billion investment in Melvin on Jan. 25, which closed its GameStop position on Jan. 27. Archegos Blowup Calls Attention to Questionable Listing Standards at New York Stock Exchange. Citadel, as a market maker that has to accept all buys and sells, gets a pass on many naked short selling rules. As of Jan. 22, the Friday before GameStop went through the roof, Citadel’s bet against GameStop was limited to just 92 shares, said a person familiar with the firm’s position at the time. JPMorgan’s Federally-Insured Bank Holds $2.65 Trillion in Stock Derivatives; How Did It Avoid the Archegos Blowup? Ken Griffin's Citadel and Steve Cohen's Point72 Asset Management are investing $2.75B into Melvin Capital to help stabilize the fund that has ben hammered by bad short bets this year. Robinhood Markets and Citadel, central players in the GameStop Corp. saga that riveted markets last month, plan to deliver a unified message to U.S. lawmakers Thursday: conspiracies swirling in Washington that they worked together to harm retail investors are categorically false. Unfortunately, the 13F does not provide the strike prices or expiration dates of the puts and calls. This illustration photo shows a person checking the GameStop stock on a smartphone on February 17, 2021 in Los Angeles as the Reddit, Citadel, … Ken Griffin, founder and CEO of Chicago-based hedge fund Citadel, is one of the star witnesses at today’s House Committee on Financial Services hearing about the GameStop … The Actual Figure May Be in the Trillions. Maxine Waters, Chair of the House Financial Services Committee, needs to put Ken Griffin under oath and unravel all of the moving parts of Citadel. Business Insider reports that Burry was Tweeting about GameStop and then deleted his Tweets. Not only Elon Musk, but Social Capital CEO and Silicon Valley billionaire Chamath Palihapitaya weighed in with a long GameStop position, declaring Jan. 26 on Twitter, “I will win.” © 2021 Wall Street On Parade. Now we have just learned that Citadel Advisors LLC (one of the sprawling tentacles of Citadel) had a large net short position in GameStop but also stood to make money as the stock whipsawed up and down. The Stock Market Is Just One Hedge Fund Blowup Away from a Crash. This week, they finally had enough, and had to close out their short position for a big loss. So let’s get this straight: Citadel Execution Services is allowed by the SEC to pay for order flow so that it can trade against the dumb money coming in from Robinhood while another tentacle of Citadel is managing money for 19 clients who can cough up $12.35 billion each. Providing exclusive original content and interviews with some of the best known voices in the world of economics and precious metals. The really big bucks resulted from Robinhood’s option trades, not its stock trades. The first question for the House Financial Services Committee is exactly what was the motivation for Griffin to prop up a competing hedge fund. Citadel and another firm, 72Point, invested $2.75 billion in Melvin this week after it lost 30% of its capital, according to The Wall Street Journal. Await another hedge fund to teeter, and step in to rescue it … (That information is missing on all 13F forms and the SEC needs to include that information in the interest of transparency.). © 2018 SGT Report | All Rights Reserved |. This is known as payment-for-order-flow and it’s probably not a comforting thought that this is what Bernie Madoff’s broker-dealer was doing while Bernie was running the largest Ponzi scheme in history. WASHINGTON (AP) — The CEO of Robinhood defended the trading platform to Congress Thursday for its actions during the GameStop trading saga, while apologizing to customers for restricting their ability to trade at the height of the frenzy. Now we have just learned that Citadel Advisors LLC (one of the sprawling tentacles of Citadel) had a large net short position in GameStop but also stood to make money as the stock whipsawed up and down. Citadel’s hedge fund owns 116,736 shares of Tesla (0.1%) while market-making business Citadel Securities owns 7,747,323 shares (4.2%),” Fox Business News explained. Welcome to the most lop-sided playing field in the history of markets. That unit of Citadel can see both the direction and the dollar volume of money heading to push a stock up or down. Robinhood, Citadel, Melvin Capital, and Point72 So Citadel is a hedge fund whose Market Making arm is handling the majority of Robinhood orders. ), Trade Stocks as You Sit On the Toilet – Yes, This Ad Actually Promotes That, On One Day Last Year, the Fed Had $495.7 Billion in Loans Outstanding to Unnamed Wall Street Trading Houses, There’s a Plot to Suck in More Retail Traders at the Top of a Bubble Market, Congressman Andy Barr Wants Robinhood’s Young Day Traders to Be Free to Trade Themselves into Poverty While All of His Own Money Remains Professionally Managed, House Hearing Provides a Message to Robinhood Traders: Retail Investors Lose Consistently When They Actively Trade their Own Account, Janet Yellen’s Plunge Protection Team Has $142 Billion to Play With, Sal Arnuk of Themis Trading Plans to Bury Robinhood, Citadel and SEC at House Hearing Today, Goldman Sachs Just Landed in the Cross-Hairs of the Senate Banking Committee, The Dark Money “Ring” of Charles Koch and Leonard Leo Gets an Airing Before the U.S. Senate – Followed by a Mainstream Media News Blackout, Watch the Last Four Federal Reserve Chairs Sing their Loyalty to Wall Street, One Day After the Senate Hearing on GameStop Manipulation, Its Stock Puts on a Wild Show of Manipulation, Dems Provide Brutal Assessment of Wall Street at Senate Banking Hearing. Reddit users on a page called “wallstreetbets” encouraged purchases of GameStop shares in order to exploit Melvin Capital’s short position on the company. By Pam Martens and Russ Martens: February 2, 2021 ~, Ken Griffin, Founder, CEO and Majority Owner of Citadel. It’s also quite interesting that while Citadel is headquartered in Chicago, the capital of options and futures trading, the tentacles of Citadel Advisors LLC spread to three continents. That time approximately 5.3 percent of the guys that bet big against debt. Yesterday that the House Financial Services Committee questioned a panel of six appearing! To Archegos Capital, was one of the puts and calls 2.65 Trillion in stock ;! Trades, not its stock trades forced Melvin to cover its Short position for big! Sec needs to include that information is missing on all 13F forms and the SEC to! Internet, Twitter Complies with Blockage Request as Farmers Protest Grows truth in a of... 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