Wednesday, 1 October 2014
Last updated 33 min ago
May 23 2013 | 12:32pm ET
Citadel Investment Group's investment-banking arm and three other firms have sued a quintet of major U.S. options exchanges, alleging that they were overcharged.
The lawsuit, filed in Chicago state court yesterday, alleges that the Chicago Board Options Exchange, International Securities Exchange, NYSE Arca, NYSE Amex and Philadelphia Stock Exchanges all systematically overcharged or wrongly assessed fees on options trades for seven years. Citadel Securities and its co-plaintiffs say they were overcharged on millions of orders over a seven-year period.
Among the issues are how the exchanges assess market-maker-to-market-maker orders with payment for order flow fees, the firms allege, and the exchanges' refusal to do anything about it. One of the firms paid nearly $6.4 million on mis-marked orders over the period, according to the lawsuit.
"The dispute arises from the exchanges' assertion that they are entitled to mischarge their members without taking any responsibility for it and without any liability under the law," the suit alleges. The firms are seeking "recovery or restitution of all PFOF fees that were inappropriately charged by the exchanges."
Citadel is joined in the lawsuit by Group One Trading, Ronin Capital and Susquehanna Investment Group.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...