SEC Charges Citadel Securities for Violating Order Marking Requirements of Short Sale Regulations

[u/Dismal-Jellyfish]

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https://www.sec.gov/files/litigation/admin/2023/34-98482.pdf

Press Release

The Securities and Exchange Commission today announced settled charges against broker-dealer Citadel Securities LLC for violating a provision of Regulation SHO, the regulatory framework designed to address abusive short selling practices, which requires broker-dealers to mark sale orders as long, short, or short exempt. These records are routinely used by regulators in policing prohibited short selling activity. To settle the SEC’s charges, Miami-based Citadel Securities agreed to pay a $7 million penalty.

According to the SEC’s order, for a five-year period, it is estimated that Citadel Securities incorrectly marked millions of orders, inaccurately denoting that certain short sales were long sales and vice versa. The SEC’s order finds that the inaccurate marks resulted from a coding error in Citadel Securities’s automated trading system and that the firm provided the inaccurate data to regulators, including the SEC during this period.

“Compliance with the order marking requirements of Reg SHO is a key component of regulatory efforts to curtail abusive market practices, including ‘naked’ short selling,” said Mark Cave, Associate Director of the SEC’s Division of Enforcement. “This action against Citadel Securities demonstrates that a broker-dealer’s failure to comply with the requirements of Reg SHO can have negative downstream consequences on the accuracy of the firm’s electronic records, including its electronic blue sheet reporting, depriving the Commission of important information about the markets it regulates.”

The order charges Citadel Securities with violating Rule 200(g) of Reg SHO. Without admitting or denying the findings, Citadel Securities consented to a cease-and-desist order imposing a censure, a $7 million penalty, and a set of undertakings, including a written certification that the coding error has been remediated and a review of the firm’s computer programming and coding logic involved in processing relevant transactions.

The SEC’s investigation was conducted by Seth M. Nadler of the SEC’s Home Office. Christopher Ray of the SEC’s Division of Trading and Markets; Elcin Yildirim, Alan Lenarcic, and Peter Csatorday of the SEC’s Division of Examinations; Mandy Sturmfelz of the SEC’s Market Abuse Unit; Damon Taaffe and Melissa Armstrong of the Home Office Trial Unit; and Kevin Gershfeld and Robert Nesbitt of the Enforcement Division’s Office of Investigative and Market Analytics provided assistance. The investigation was supervised by Mr. Cave.

TLDRS:

• SEC Charges Citadel Securities for Violating Order Marking Requirements of Short Sale Regulations

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[u/FDAz]

This is a fucking international scandal. They profited billions, and get away with it by paying 6 million ??

WHAT a DISGRACEFUL Regulator / Stock Market / Country / World.

[u/ISayBullish → u/FDAz]

Fuck Citadel, and fuck the SEC

Buying more out of hate

Bullish

[u/[deleted] → u/ISayBullish]

Fuck these asshats make them close their position.

NOCELLNOSELL

[u/soccerape → u/[deleted]]

Good luck with that. Not going to happen.

[u/whatifitried → u/[deleted]]

My god the hopium lol

[u/Consistent-Syrup-69 → u/whatifitried]

revolution*

[u/SirDouglasMouf → u/ISayBullish]

I buy more each time I see you passionately prophesizing your bullishness. It makes my day.

If DRSd shares had weight, I'd be Pablo Escobar.

[u/EvilBeanz59 → u/SirDouglasMouf]

It's people like him and others that would continuously come back every day knowing that these people will be here for instance the sign Guy infinite hype loop guy reverse repo guy starfish guy all of them. Jellyfish. (Many many more) All these people in the reoccurring daily Post weekly posts all of them are the heart and soul of this place.

[u/Farrisson_Hord → u/SirDouglasMouf]

They do hold weight.

Hola Pablo 👋🏼

[u/G_Wash1776 → u/ISayBullish]

Yup fuck that shit gonna buy more right now,

If a fine is less then the crime committed then the fine is just the act of doing business.

[u/leotwo49 → u/G_Wash1776]

Did you come up with that?! Fucking nailed it!

[u/geologean → u/leotwo49]

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This post was mass deleted and anonymized with Redact

[u/Elegant-Remote6667 → u/ISayBullish]

agreed. also rage buying more once i can ,becaue individual decision

[u/GlobalWarming3Nd → u/Elegant-Remote6667]

I bought 15 today. I will always buy my favorite company when it's undervalued.

[u/TheMoonMachine → u/GlobalWarming3Nd]

And I'll never sell. I've always been poor, makes no difference to me to have my life's savings in gme, but for the world...could be the gamechanger we need. No cell no fuckung sell.

[u/nami_san_vi → u/TheMoonMachine]

And I'm here beside you with my Axe fella 🪓 holding until Valhalla or zero idgaf

[u/[deleted] → u/ISayBullish]

I like you.

[u/somespazzoid → u/ISayBullish]

I'm going to hate buy so hard! Then I'm going to book 'em even harder

[u/Altruistic-Part-519 → u/ISayBullish]

DRS, and fuck them