[bboygravity]

What claim about how the market works is silly exactly and why?

My claim was that 1 person owns the 1 major US market making business AND a hedge fund. Facts: they can control the price (naked shorting + strategic FTDs) and trade on it. Even if they can't/don't control the price, they can still front run the entire market. And even if they don't do that bEcaUsE iT's iLliGaL they legally (not ethically) do it through PFOF from Robin Hood among others.

They do all of that and way more. Just look up the continuous massive FINRA and SEC violations and the (tiny) fines they pay for it.

But I'm sure all is fine and dandy. I find it mind blowing why anybody would defend the biggest crook since Madoff.

[next_xibalba]

> they can control the price (naked shorting + strategic FTDs) and trade on it

This is the bit that seems poorly substantiated and unlikely. Please elaborate. Anything evidence you can cite would be helpful.

Also, Citadel’s HF has definitely had down years.

[bboygravity]

I understand. I found it mind blowing and unbelievable too at first. I can recommend this book:

Naked, Short and Greedy: Wall Street's Failure to Deliver (2020)

Susanne Trimbath

It's full of examples and evidence from someone who has worked at the SEC.

[mmiyer]

You should be happy that market makers like Citadel Securities exist. Payment for order flow is why commission free trading can exist. Citadel Securities, Virtu, Hudson River Trading, Jump Trading etc compete in a negative sum game which reduces the bid ask spread on various assets (i.e. make them cheaper to trade for everyone).

Also lol that a hedge fund with about 1% of total hedge fund assets controls prices. What do you think the other hedge funds and trading firms are doing?

[glockjock]

Actually, this could all be done with a blockchain bid and ask trading system that would match all bids and asks and execute without Yass and Griffin and Mercer. If Susquehanna and Citadel and Renaissance want to do it then every transaction should be taxed on a scale and the money used to pay down the national debt, or into next gen energy infrastructure. These guys are buying yachts, Lamborghinis, and elections.

[immibis]

Presumably (s/he thinks) the other hedge funds are not also market makers.