(Reuters) – Citadel Securities did not ask Robinhood (Nasdaq 🙂 or any other firm to limit or restrict trading on Gamestop (NYSE 🙂 and other so-called “meme stocks” at the height of the retail-driven trading frenzy in January, the market said on Tuesday.
Robinhood and several other brokers restricted trading in Gamestop shares on January 2.
Citadel Securities said in a statement to Reuters on Tuesday that “Citadel Securities has never requested, been informed, agreed to or otherwise requested to restrict or restrict the transactions of such securities.”
Trading has stopped frustrating retail investors, reducing hedge fund losses and scrutinizing legislators and regulators. At a U.S. congressional hearing in February, Ken Griffin, CEO of Citadel LLC, who also founded Citadel Securities, said the hedge fund had not contacted Robinhood about restricting trading.
Robinhood CEO Vlad Tenev also said at the time: “We don’t answer hedge funds.” The online brokerage did not immediately comment when contacted by Reuters.
“It will surely disappoint conspiracy theorists that Vlad and I never texted, called or met each other,” Griffin said.
Commission-free brokerage, including Robinhood, has been criticized for its practice called Payment for Order Flow (PFOF), under which it charges fees from market makers to route them and does not charge users for individual trades.
The practice is currently under investigation by the US Securities and Exchange Commission.
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