A Retail Trader Who Quadrupled Her AMC Holdings to Half a Million Dollars is Trolling Citadel’s Ken

[murray t turtle]

Ive had this very conversation with the folks at TD when they wouldnt let me open positions in GME..

i was really pissed until I heard their side of the story...

The exposure to clearing agents is indeed massive on stocks like GME

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Good confirmation. [Those that sell order flow openly disclose it.] Your point also confirms, since brokers, market makers make money on volume/they had real good reasons to halt trading in certain stocks........Interesting name =GameStop.LOL

 

[zdreg]

GME remind me when the Hunt Brothers tried to corner the market in silver. The exchanges changed the rules to force them to liquidate.

Robin Hood did not act in the interest of its clients by restricting trading. They are undercapitalized and to save themselves they screwed their customers by changing the rules with trading restrictions.

Citadel is a professional firm. They don't make directional bets to try to ramp up profits. That is for retail traders.

 

[zdreg]

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Good confirmation. [Those that sell order flow openly disclose it.] Your point also confirms, since brokers, market makers make money on volume/they had real good reasons to halt trading in certain stocks........Interesting name =GameStop.LOL

Disclosing payment for order flow is a legal requirement. Who and what good reasons did they have to stop trading of retail traders?

 

[murray t turtle]

GME remind me when the Hunt Brothers tried to corner the market in silver. The exchanges changed the rules to force them to liquidate.

Robin Hood did not act in the interest of its clients by restricting trading. They are undercapitalized and to save themselves they screwed their customers by changing the rules with trading restrictions.

Citadel is a professional firm. They don't make directional bets to try to ramp up profits. That is for retail traders.

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I see your points;
but the exchanges have a right to raise margins+ stop corners.
Actually the Hunt bros got plenty of warning on their attempted silver corner. I enjoyed the book Big Rich, included the Hunt bros. The Hunt Bros also went into court on thier soybean corner+ turned out they should have quit while they were ahead.
Like the other posters implied, brokers have an obligation not to go bankrupt.
The Hunt Oil Co was talented, good read.

 

[TrailerParkTed]

I think the settlement issue was a real risk.

GME was moving hundreds of dollars a second on millions of shares by retail investors trading on margin. The credit risk to the brokers must have been massive even if 1/2 their customers were long and 1/2 their customers were short.

There were no shares on Robinhood(Can’t short), Etrade, Schwab or Fidelity during the spike $70-$500(Before trading halt by Hood). IBKR had nothing for small accounts to short. Citadel had exposure by Melvin?

 

[zdreg]

There were no shares on Robinhood(Can’t short), Etrade, Schwab or Fidelity during the spike $70-$500(Before trading halt

There were no shares on Robinhood(Can’t short), Etrade, Schwab or Fidelity during the spike $70-$500(Before trading halt by Hood). IBKR had nothing for small accounts to short. Citadel had exposure by Melvin?[/QU

options as a substitute?

 

[VEGASDESERT]

Exactly. I trade stocks all day long with penny spreads. I pay zero commissions and receive executions to 4 decimal places. Lit markets that give you better executions are a figment of the imagination. This is a gambit by old line wall street brokerage firms who can not compete with likes of Citade and Virtiu. In the old days and today market makers were good for 100 shares. If payment for order flow was made illegal I am not about to pay hundreds of dollars in commissions on a daily basis on some promise that I getting a better deal. The system is fine as is. If you don't like payment for order flow go to a firm that doesn't receive payment for order flow. My guess those those firms mentioned in the article praising the lit market are my guess probably being paid by brokerage firms who don't want their names mentioned in the campaign to delegitimize payment for order flow..

amen. if you think pfof is a rip off no problemm get with a broker where you can route to whatever exchange you want and pay up. simple.

 

[TrailerParkTed]

Options are cash, equity destroyed by the GME event would not be the biggest risk. I think RH allowing “Instant BP” and margin on GME when all the others brokers coded it a cash security is closer than shorts. I wrote that all ten of my brokers had no shares. A friend with a Center Point and big IB account had no access from $500 and puts and calls were $250 x $150 for a $500puts and $500 calls.

 

[engineering]

GME remind me when the Hunt Brothers tried to corner the market in silver. The exchanges changed the rules to force them to liquidate.

Robin Hood did not act in the interest of its clients by restricting trading. They are undercapitalized and to save themselves they screwed their customers by changing the rules with trading restrictions.

Citadel is a professional firm. They don't make directional bets to try to ramp up profits. That is for retail traders.

Not true. Citadel made a deal wild Melvin Captial which caused them to have exposure.
This is a simple fact:
https://www.nytimes.com/2021/08/21/business/citadel-melvin-gamestop.html

I suspect that Citdel was already exposed in the event of a Melvin bankruptcy and decided that they may as well get a stake in the firm if they were going to be forced to put up money to cover the losses. (Rules require the broker to make good if the client fails. If Melvin was trading through Citadel and was on the edge of bankruptcy, it seems like a smart idea for Citadel to come in and prevent the bankruptcy in exchange for a significant chunk of the upside.)

The part that gets really shady is all the interplay between Citadel, various retail brokerages and DTCC (DTCC has a Citadel exec on its board.)
DTCC seems to be the fig leaf that these firms are using to justify screwing their clients to protect the whales. I have yet to see details of the requirements DTCC issued to these companies (the existence of the requirements has been bragged about in the media, but the details not provided), or even a comparison to how DTCC treated other market participants with positions in the same stock.

I can understand individual firms acting independently and raising margin requirements, but I don't see how anyone can possibly justify preventing a retail trader from buying a stock with settled cash.

 

[newwurldmn]

I think the citadel investment into Melvin was an opportunity to get in with a fantastic stock investor who was weak and they could negotiate a good deal.