Citadel Securities Fined $7 Million for Inaccurately Marking Millions of Short Sale Orders

SEC charges Citadel Securities for violating short sale order marking requirements
Citadel Securities inaccurately marked millions of short sale orders as long over 5 years
Inaccurate marks resulted from coding error in automated trading system
Charged with violating Regulation SHO rule requiring accurate order marking
Citadel agrees to $7 million penalty and undertakings to remedy issues

sec.gov

Relevant topic timeline:

9/24/2023

Citadel Sues Former Employees Over New Crypto Venture, Accuses Them of Stealing Secrets

Citadel Securities has taken legal action against founders of Portofino Technologies, Alex Casimo and Leonard Lancia, for allegedly plotting the launch of their start-up while still employed at Citadel Securities, while Portofino has accused Citadel of "intimidation and interference" and dismissed the claims as corporate bullying.

9/27/2023

Citadel Ready to Battle SEC Over Personal Device Monitoring Demands

Citadel is ready to challenge the Securities and Exchange Commission's (SEC) probe into alleged unmonitored communications on WhatsApp, taking a more aggressive stance than banks that have settled with the SEC in similar investigations. The hedge fund is willing to go to court and argue that it is not subject to the same rules as Wall Street banks, potentially weakening the SEC's authority in this area.

9/28/2023

SEC Nears Deals With Dozens of Firms Over Unauthorized Messaging

The U.S. Securities and Exchange Commission (SEC) is finalizing settlements with around two dozen Wall Street firms to resolve investigations into record-keeping lapses, with fines potentially reaching $50 million per firm, as part of the SEC's crackdown on the use of unapproved messaging apps.