Financial Industry Regulatory Authority is reported to have fined a unit of Chicago-based Citadel Investments $800,000 for erroneous orders sent to other exchanges. FINRA: Citadel’s orders were mis-priced or duplicated Reuters is reporting that from March 18, 2010 to January 8, 2013 Citadel did not have in place a supervisory system to check the accuracy of its orders and to reject orders that were mis-priced or duplicated, according to a FINRA letter dated June 12. In other words, false orders were submitted by Citadel to other exchanges. The motivation for this is unclear, but a regulatory source indicated the bulk…
FINRA Fines Citadel As Documents Reveal Extent of Issue
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.