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"The outrage is about illegally manipulating the market in broad daylight by preventing retail investors from purchasing a stock." There's a difference between
by missedthecue 6y ago
"The outrage is about illegally manipulating the market in broad daylight by preventing retail investors from purchasing a stock."
There's a difference between preventing someone from buying a stock and telling them you're not going to assume the risk of making a market for them, which is what's going on here. You cannot force Citadel to make a market for your orders.
They happen to result in the same situation, but the implications are completely different.
- toast0 6y ago> You cannot force Citadel to make a market for your orders. That depends on the market maker contract Citadel has with the brokerage(s) and the exchange(s). Although, I don't think the contracts with exchanges are very tight; I don't know about the contracts with brokerages. IIRC, Nasdaq had (has?) a special order type for market makers who didn't want to actually make a market that would put in bid and ask at exactly the maximum contractually allowed spread away from last trade, and withdraw and replace them when any trades did occur; making it much harder to actually trade with the market maker.
- missedthecue 6y agoCitadel would never ever put themselves in a situation where they contractually have to assume an unpredictable level of risk