Market maker Citadel Securities said Monday that it did not ask Robinhood Markets Inc (NASDAQ: HOOD) to restrict or limit trading activity at the peak of the GameStop Corp (NYSE: GME) short squeeze saga.
What Happened: Citadel posted a series of tweets Monday to defend itself and its CEO Ken Griffin.
See Also: How To Buy GameStop (GME) Shares
Citadel Securities did not ask Robinhood or any other firm to restrict or limit its trading activity on January 27th.
— Citadel Securities (@citsecurities) September 27, 2021
As per Citadel, it was the “only major market maker during this time that provided continuous liquidity every minute of every trading day.”
The firm claimed that, on Jan. 27, it executed “an extraordinary 7.4 billion shares on behalf of retail investors.”
“Ken Griffin and Vlad Tenev have NEVER met or spoken,” Citadel tweeted, clarifying its stand on the association between its CEO and that of Robinhood.
The market maker claimed that Griffin had dutifully told Congress that Citadel had not requested Robinhood restrict trading.
Why It Matters: Citadel’s response on Twitter comes as the hashtags “Citadel,” “KenGriffinLied,” “LiedUnderOath” trended on the social media platform.
— Roscal Almodovar (@roscal_nyc) September 27, 2021
— Hannibal Hodl (@ElephantMan_247) September 27, 2021
Citadel’s comments were in relation to the February-held Congressional hearing in which both the firm and Robinhood had denied collusion.
At the time Tenev had said, “I want to be clear at the outset: any allegation that Robinhood acted to help hedge funds or other special interests to the detriment of our customers is absolutely false and market-distorting rhetoric.”
While Griffin said, “I want to be perfectly clear: we had no role in Robinhood’s decision to limit trading in GameStop or any other of the ‘meme’ stocks.”
Meme stocks are a reference to stocks popular among retail traders such as GameStop and AMC Entertainment Holdings Inc (NYSE: AMC).
Melvin Capital, a short seller that got squeezed by retail investors on r/WallStreetBets, was provided with liquidity worth $2 billion by Citadel in January.
However, at the Congressional hearing, Melvin’s founder and Chief Information Officer Gabe Plotkin said, “To be sure, Melvin was managing through a difficult time, but we always had margin excess and we were not seeking a cash infusion.” Plotkin denied that Melvin was bailed out by Citadel.
Price Action: On Monday, Robinhood shares closed nearly 0.3% higher at $44.76 in the regular session.
Photo: Courtesy of Mike Mozart on Flickr
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