Citadel Securities controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
Back to profile6 entries
2023
Regulation SHO settlement
The SEC found that a coding error caused millions of sell orders to be mismarked between 2015 and 2020. Citadel Securities accepted a censure, a $7 million fine, and related undertakings without admitting or denying the findings.
2021
GameStop-related litigation and scrutiny
Investors alleged that Citadel Securities coordinated with Robinhood to restrict trading in certain meme stocks during the 2021 short squeeze. The case was dismissed and the dismissal was affirmed on appeal.
2020
Multiple trading-control and reporting sanctions
U.S. regulators censured the firm in several matters involving failures to deliver, naked short selling, short-sale indicators, circuit-breaker halts, and best-price obligations. A separate Chinese regulatory settlement concerned historical trading irregularities.
2018
Incorrect trade reporting
The SEC fined the firm $3.5 million for incorrectly reporting nearly 80 million trades between 2012 and 2016. Citadel Securities admitted the findings.
2017
Retail-order pricing disclosures
The SEC fined Citadel Securities $22.6 million after finding that two algorithms did not handle certain retail orders at the best observed price or seek the best available marketplace price as represented.
2014
Erroneous automated orders settlement
Four regulatory bodies reached a settlement involving automated-trading programs that failed to block erroneous orders, including a large unintended short sale and an order that materially moved a stock price.