To protect mega firms like Citadel…
Recently Citadel was found to be the largest private US trading venue – this morning Reuters reports that Federal authorities are investigating the market-making arms of Citadel LLC and KCG Holdings looking into the possibility that the two giants of electronic trading are giving small investors a poor deal when executing stock transactions on their behalf.
According to Reuters, the DOJ has subpoenaed information from Citadel and KCG related to the firms’ execution of stock trades on behalf of clients. Not just Citadel, the DOJ is also looking at a number of high-speed trading firms that pay retail brokerages to sell them their flow of customer orders for stock trades. This segment of the industry is known as wholesale market making.
In the case of Citadel, authorities are examining internal data concerning the firms’ routing of customer stock orders through exchanges and other trading systems, to see whether they are giving customers unfavorable prices on trades in order to capture more profit on the transactions.
In other words, the DOJ is looking into whether Citadel is frontrunning its clients, something others have claimed for years.
Obama’s TTIP would protect these mega firms from being sued by small investors.
Now you know who Obama really works for.