I’m talking about Citadel Securities being Insecure on Twitter. They say a lot of things and imply a lot more, but some of the Facts simply don’t add up.
It’s almost like something Fucky is going on.
So Citadel Securities, one of many arms of Citadel, is saying that it had no involvement in Robinhood restricting trading for GME during the January 2021 fiasco. Instead, Citadel is saying it was the NSCC raising requirements.
Let’s deconstruct this like a good psycho-anal-lytic-the-rapist, wrong hyphens? Whoops.
Anyways, let’s go to some Not-Valid Financial Commentary;
Citadel Securities tweeted this thread;
Citadel is Saying Robinhood Restricted Trading on Game Stop at the Behest of NSCC raising requirements,
Meaning that Robinhood had liquidity issues, the same ones that Robinhood denied during CNBC interviews and even blamed the NSCC during a conversation with Lord Elon Musk.
Anyways, the tweet thread continues;
So There is an Email from the NSCC that has a Deficit posted of about $3 Billion.
Robinhood CEO and COO testifies that it was the NSCC that raised $3 Billion margin call and that led to imposing trading restrictions.
The DTCC has an email stating that meme stocks had a significant VaR charges, margin requirement go up, because memes. Anyways, this doesn’t specifically state GME, but for the sake of assumptions, let’s assume it was GME.
A whole bunch of other Brokers had ‘liquidity issues’ to meeting the margin requirements and so they also restricted trading meme stonks.
Citadel Tooting their own horn saying they’re the good guys.
NSCC says it like Shaggy “It Wasn’t Me”;
“yea, those brokers restricting trade. That was, like totally their fault. Not anything we did.” -Basically
It’s almost as if raising requirements would force the hand of these brokerages to actually be real brokers. But that’s a conversation for another time (what, you think brokers actually buy your shares?).
But, let’s be real, NSCC is definitely complicit for making the situation worse.
“Let me know if you can pay an absurd amount in no time at all at the request and requirement of us imposed because we’re broke as fuck and can’t handle the trade volume of these meme stonks that have stress tested the entire financial system to all hell, mainly because you degenerate fucks don’t play by the rules and think you can get some OTC Gain by offsetting informal CFDs on stonks by not buying into them and pocketing the cash due to taking advantage of settlement time and shit. You fucks.” – No one in particular
Clearly someone couldn’t do their job(NSCC), so to mitigate the risk, they just raised rates on everyone else(the brokers) so that the brokers couldn’t do their job. So Shit rolled down hill and the NSCC and the DTCC are to blame.
This is all in accordance to Citadel pleading innocence by saying it was Robinhood’s (and other Broker’s) decision based on the NSCC to restrict trading.
But of course, some law suit is going to blame Robinhood, I mean, as they should, because they are gross;
I personally think,
That it is unreasonable to use a risk assessment tool for each individual equity that exists (there’s like thousands of them), So I’m not sure how this is even helpful especially as an afterthought to an already bad situation.
Kudos to this lawsuit that blames Robinhood, though.
But also, the NSCC is being unreasonable to enforce a (new-ish) Special Risk VaR pay thing that was previously agreed upon but also apparently not frequently used in extremis. To be used in, well, Extremis.
$3 Billion is a lot of fucking collateral.
So, it was unreasonable to use the ‘NSCC Tools’ because the damage had already been done by NSCC by imposing a shittily huge Margin Requirement/Call.
“well you should have had more cash based on these risk Calcualtions” -NSCC if I could speak for them
“well maybe if you didn’t raise margin out of fucking nowhere, then we wouldn’t have these issues”- Robinhood if I could speak for them
Here’s a shit tiered meme to help make sense of it;
Then Robinhood went to Position Closed Only (PCO);
And then, sort of, -in a baller move- said ‘Fuck the Police’ (but NSCC instead of Police)
“We are too big for them to actually shut us down”
I don’t like Robinhood, but I do have respect for the Balls this person had for saying such a corrupt line. Like, that’s gaudy as fuck.
Props, I haven’t seen such blatant corruption one liners in a few days, so this one tops the week, maybe month even.
Robinhood for the public records did some things;
They first blamed trade restrictions on Volatility.
Then they blamed the NSCC.
Essentially, Robinhood was ready to make it PCO and just needed someone to blame. Internally they knew that other brokers were also PCO’ing the Meme stonks.
So, they didn’t necessarily communicate with other brokers.
But technically speaking, they did conspire with brokers indirectly to stop buying, limiting buy orders.
Some have even said there were no Raised NSCC Deficits,
If true, this would mean that Brokers pre-emptively jumped the gun before NSCC’s requirement changes.
So was the email from the NSCC forged? A false flag as a pretext? What the fuck is going on here?
But what about Citadel?
Seems like there is evidence suggesting conspiracy, or more-so, inferring it;
It’s not like Citadel talks to other Brokers,
Like, Citadel, if you were so innocent, why would you do so much coordination after the fiasco?
Why would there be a need to;
“Confirm certain orders were cancelled”
“Enforce Continuing restrictions”
“Coordinate the narrative response”
If you’re innocent, why are you cleaning up someone else’s mess?
It’s not like you –Gasp–
Conspired with these brokers to prevent trading?
Oh, noooo . . . anyways,
Seems like there was a lot of chat leading up to the fiasco;
Isn’t it also weird that Citadel offers rebates and pays PFOF to Robinhood?
Isn’t it also weird that Citadel has positions in meme stonks?
Positions that would profit from meme stonks going down?
Isn’t it awfully convenient that stopping people from buying would result in selling,
Tanking the price of meme stonks,
And making these Positions Profit for Citadel?
It almost seems like a -2nd Gasp-
Conflict of interest?
Don’t worry, Robinhood, Continued imposing restrictions;
It’s not like a certain employee from a specific company named Citadel was talking about exactly that. You know,
“Enforce Continuing restrictions”
Hmmm. . .
Referencing my earlier Post;
Has some tidbits of interesting information;
Also, Robinhood secured a Loan for [Redacted amount] from Citadel, but every link has been scrubbed from the internet;
I mean, every link is gone. So I can’t even produce the claim or fact from any sources. So It’s hearsay now because it’s no longer there.
This was before Robinhood got the $2.4 Billion from a second round of funding.
Literally the day after they restricted trading on January 28th, they got funded an extra billion dollars on the 29th.
If I recall correctly, $500 million of that was from Citadel.
So, uh, yea.
But the source links got deleted,
So, uh, sus?
Well, before I close up shop, just read this thingy;
You can read where all these nice screen brags/grabs come from here;
This article should be taken at face value as an opinion backed by veneered opinions backed by plausible deniable reliable unverifiable opinions. The Court cases hold testimony and statements that people affirm to be true and I like the stroke of their golf swing. So I take everything here with a grain of salt, so you definitely should. Hell, I wrote/cooked this. So trust me when I say You should take it with salt if I’m taking it with salt. What, you don’t trust the shef?
Everyone here is the bad guy.
It was a shit show to begin with.
The entire stock market was rigged for this specific, peculiar, idiosyncratic risk of a stock (among other meme stocks) through conspiracy and the fall-out-blame-game is fucking ugly as no one wants to be accountable and get ass fucked by the long dick of the Financial Law to keep the idea of US market Integrity as a viable thing.
The Brokers were shit, the Clearing Houses were shit, DTCC and NSCC especially, and the Market Maker is also shit.
That’s like my opinion.
Here’s some art work from rando’s on the internet;
Turns out, it’s a shit world, and that’s my Hot Takes on Hot Cakes.
*Not Valid Financial, Legal, Life, or Any Advice
The grossest thing about writing this article was the fact that I had to self jerk myself. So one of the pieces I wanted to write about was not publically available because the search engines are either trash or bought out or both. So I had to reference one of my earlier shit articles to produce tangible meme-worthy material. The whole Citadel Funding Robinhood roughly ~$500 milly thing. That was cringe.
Here’s a great side article that really makes you go ‘huh’ towards Citadel.
Or these ZeroHedge tweets,
Update 01 OCT, 2021;
I forgot to mention, per DTCC testimony;
Those raised requirements were waived before opening bell. You know, around 10am when they (the brokers) decided to restrict trading or something.
Yea, sus as fuck.
Also, I forgot to mention, that Citadel has a person related to a person in the DTCC. What’s the relation? They’re the same person.
This guy per the DTCC website;
So this guy is a Board Member for the DTCC,
Notice his connections with Citadel, E*Trade, and Goldman Sachs, Morgan Stanley, etc.
Notice how DTCC and Citadel and E*Trade are involved in all of the above informational Post.
Kind of sus, dontcha think?
Honestly, DTCC is much like Finra, a scam (in my opinion) where it’s a consortium of self regulated members that deal with their inner workings. So it’s definitely a mix of interest, whether or not it is a conflict, will have to depend on due justice and other things that remotely might matter.
UPDATE 02, OCT 2021;
Forgot to mention this little gem;
So the day before they restricted trading, Citadel Bet way more money on the stocks dipping. Before the market opens for everyone.
Huh, isn’t that at all fucky?
Like, That’s blatantly unfair.
Yea, welcome to the US Stock Market buddy.