Article: Trading hot stocks like GameStop seems fun until you look beneath the surface

Article - Media

Trading hot stocks like GameStop seems fun until you look beneath the surface

Congress is asking questions about whether middlemen or “market makers” like Citadel that execute stock trades really give small investors the best prices.

Gretchen Morgenson, ABCNews, 18 February 2021

Market makers like Citadel make money by pocketing the difference between the price at which they buy shares — the bid — and the price they receive from selling them to Robinhood clients, the offer. Other firms in the business are Virtu Americas, G1X Execution Services and Two Sigma Securities.

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Fined: Virtu Americas LLC Fined by FINRA

Fined

Virtu Americas LLC Fined by FINRA

A Letter of Acceptance, Waiver and Consent (AWC)
was issued in which the firm was censured and fined $250,000. Without
admitting or denying the findings, the firm consented to the sanctions and
to the entry of findings that it implemented policies and procedures that
failed to reasonably avoid displaying, or engaging in a pattern or practice of
displaying, locking or crossing quotations in over-the-counter (OTC) equity
securities.

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Fined: Virtu Americas LLC fka KCG Americas LLC Fined by FINRA

Fined

Virtu Americas LLC fka KCG Americas LLC Fined by FINRA

An AWC was issued in which the firm was censured, fined $125,000, and required to revise its written methodology with respect to the areas described in the AWC. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it did not maintain a reasonable written methodology governing the execution and priority of all pending orders that it received for handling and execution.

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