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Part of the problem is that Citadel had insight into the RH order flow before the rest of the market. Normally this wouldn’t matter but this also meant they get

Part of the problem is that Citadel had insight into the RH order flow before the rest of the market. Normally this wouldn’t matter but this also meant they get to see orders to buy GME went from <lots> to zero in an instant. Given their position on the other side of that trade, this advance warning (potentially) let them take that fact into account before anyone else and thus trade accordingly. RH stopping all GME purchases was market-moving news and citadel got to know before anyone else, to the detriment of those RH users that were long GME.

capitalsigma 5y ago
> RH stopping all GME purchases was market-moving news and citadel got to know before anyone else, to the detriment of those RH users that were long GME. Yes, that is the point of paying for order flow. That is doubtless why RH users don't pay commissions.
- bidirectional 5y ago
  No it's not, payment for order flow allows market makers to fill non-market-moving customers at better prices, capturing the spread. You're spreading harmful misinformation.