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FORUM INDEX Join The Discussions AMC Citadel has been losing billions of dollars (AMC/GME) Reply To: Citadel has been losing billions of dollars (AMC/GME)

  • CrayonMuncher

    Member
    July 2, 2021 at 11:48 am

    I have to agree with all the points made. What gets me irritated is the allowed conflict of interest of Citadel.

    Think about it. Primarily, they direct order flow (about 47% of all market activity). They see the orders coming in and direct traffic…at least that’s what they are supposed to do.

    Now, mix in PFOF and allow them to also participate trading in the very market they direct traffic for. How are they NOT going to look for an advantage and use it?

    Ideally it seems to make sense that traffic directors cannot trade and traders cannot direct traffic. If those lines clearly separated those activities, then there is a little bit more fairness.

    Apply that same logic to the DTCC. What if the DTCC who not only process/clear the orders, were also allowed to trade on those very same orders? All orders could get taken advantage of again. So, how was the average retail investor not set up for failure in these scenarios? All along the path of the order, each group that sees orders and has a hand in it could gain an advantage before your order is even placed, and you are none the wiser.

    Unfortunately, I doubt this topic is going to get any attention from the SEC.