Latest news with #Citadel Securities
Yahoo
3 days ago
- Business
- Yahoo
US appeals court strikes down SEC rule on 'audit trail' funding
WASHINGTON (Reuters) -A federal appeals court on Friday struck down 2023 regulations adopted by the U.S. Securities and Exchange Commission on funding a comprehensive market surveillance system, finding that Wall Street's top regulator had not provided a sufficient basis for allowing stock exchanges to pass on its costs to their members, court papers showed. The unanimous decision represented another blow to SEC regulations adopted under the previous Biden administration, which faced concerted opposition from industry and Republican lawmakers. It was also a setback for the Consolidated Audit Trail, a repository of investor and transaction data meant to give regulators overarching visibility into U.S. market operations, but which has faced delays and obstacles for more than a decade. The American Securities Association and Citadel Securities, which brought the lawsuit, both hailed the outcome. The ruling "prevents a tax hike on every American investor who buys or sells a share of stock," ASA President Chris Iacovella said in a statement. The SEC did not immediately respond to requests for comment. Over the objections of its Republican members, the SEC in 2023 split the operating costs among buyers, sellers, and exchanges. Officials said at the time this would divide costs evenly but also allow exchanges several years to recoup hundreds of millions already spent. This drew stiff objections from the investment industry, which said it could be left paying an unfairly large share. The two Republicans are now part of the five-member commission's controlling majority. In an opinion for a three-judge panel of the U.S. Court of Appeals for 11th Circuit, Circuit Judge Andrew Brasher said that, because the SEC had not advanced a sufficient justification in deciding how the system's cost would fall on different actors in the marketplace, "we conclude that the 2023 Funding Order is arbitrary and capricious" and therefore in violation of federal laws governing the crafting of regulations. The appeals court sent the rule back to the SEC for further processing in line with the court's decision. The SEC mandated the CAT's creation in 2012 as a response to the "flash crash" of 2010 when major Wall Street indexes temporarily erased nearly $1 trillion in market value in a matter of minutes. Officials say it can allow regulators to spot market manipulation and have cited its data in enforcement actions.
Reuters
3 days ago
- Business
- Reuters
US appeals court strikes down SEC rule on 'audit trail' funding
WASHINGTON, July 25 (Reuters) - A federal appeals court on Friday struck down 2023 regulations adopted by the U.S. Securities and Exchange Commission on funding a comprehensive market surveillance system, finding that Wall Street's top regulator had not provided a sufficient basis for allowing stock exchanges to pass on its costs to their members, court papers showed. The unanimous decision represented another blow to SEC regulations adopted under the previous Biden administration, which faced concerted opposition from industry and Republican lawmakers. It was also a setback for the Consolidated Audit Trail, a repository of investor and transaction data meant to give regulators overarching visibility into U.S. market operations, but which has faced delays and obstacles for more than a decade. The American Securities Association and Citadel Securities, which brought the lawsuit, both hailed the outcome. The ruling "prevents a tax hike on every American investor who buys or sells a share of stock," ASA President Chris Iacovella said in a statement. The SEC did not immediately respond to requests for comment. Over the objections of its Republican members, the SEC in 2023 split the operating costs among buyers, sellers, and exchanges. Officials said at the time this would divide costs evenly but also allow exchanges several years to recoup hundreds of millions already spent. This drew stiff objections from the investment industry, which said it could be left paying an unfairly large share. The two Republicans are now part of the five-member commission's controlling majority. In an opinion for a three-judge panel of the U.S. Court of Appeals for 11th Circuit, Circuit Judge Andrew Brasher said that, because the SEC had not advanced a sufficient justification in deciding how the system's cost would fall on different actors in the marketplace, "we conclude that the 2023 Funding Order is arbitrary and capricious" and therefore in violation of federal laws governing the crafting of regulations. The appeals court sent the rule back to the SEC for further processing in line with the court's decision. The SEC mandated the CAT's creation in 2012 as a response to the "flash crash" of 2010 when major Wall Street indexes temporarily erased nearly $1 trillion in market value in a matter of minutes. Officials say it can allow regulators to spot market manipulation and have cited its data in enforcement actions.
Bloomberg
11-07-2025
- Business
- Bloomberg
Citadel Securities Big Move in Derivatives Dominance
Citadel Securities is buying Morgan Stanley's unit focused on electronic market-making for US equity options. The move expands the firm's already dominant role in the market. Bloomberg's Sridhar Natarajan joined Wall Street Beat on Open Interest to talk about the deal. (Source: Bloomberg)
Bloomberg
10-07-2025
- Business
- Bloomberg
Citadel Securities Strengthens Position With Morgan Stanley Deal
Citadel Securities bought the unit of Morgan Stanley that's focused on electronic market-making for US equity options, a move that further cements the firm's dominant role in the popular derivatives. The deal will likely bolster Citadel Securities as an options market maker, filling orders both electronically and on trading floors. Similar to a designated market maker for stocks, a specialist in options is approved by an exchange and required to quote buy and sell prices beyond the normal requirements of a registered market maker.
Reuters
10-07-2025
- Business
- Reuters
Trading giant Virtu backs plan for IEX's proposed options exchange
July 10 (Reuters) - Trading and market making firm Virtu Financial threw its support behind a proposal by IEX to launch a new U.S. options exchange, saying the initiative could promote competition and innovation. In a letter to the Securities and Exchange Commission dated July 9, Virtu called IEX's proposed platform a "well-intentioned" step that could benefit retail investors and enhance transparency. IEX has proposed an options exchange that would introduce a 350-microsecond delay on trades, a speed bump aimed at curbing advantages held by high-frequency traders and leveling the playing field for other market participants. However, the plan has sparked debate. Market maker Citadel Securities and the Securities Industry and Financial Markets Association urged the SEC to reject the proposal, arguing that the speed bump could affect market dynamics and price discovery. Virtu, meanwhile, said it supported efforts that "enhance the investor experience". "We believe that the introduction of new trading venues has the potential to promote competition, foster innovation and possibly deliver better trading outcomes for all market participants," Virtu wrote. Besides Virtu, IEX's proposal has also garnered support from the Chicago Trading Company, All Options USA and HAP Trading. "We appreciate that a broad range of industry participants and market makers are willing to go on the record in support of our options filing, and in particular, the feature that protects market makers from latency arbitrage," IEX's Chief Market Policy Officer John Ramsay said. "Our exchange is designed to foster competition and deliver better prices for investors — a theme that is consistently reflected in their endorsements."
