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Citadel Fined $22.6 Million for Retail Stock Trade Infractions

  • SEC says Citadel Securities misled brokers about its system
  • Largest fine of its kind for this kind of misconduct
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Citadel Securities Prioritizing Off-the-Run Treasuries

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U.S. regulators extracted a $22.6 million penalty from Ken Griffin’s Citadel Securities after finding it inaccurately described how it handled trades placed by small investors.

The punishment, a record of its kind for a broker handling retail client orders, concerned a widespread but often-attacked system that underpins how some investors’ orders are processed in the $26 trillion U.S. stock market. The case centers on a system where Citadel Securities pays retail brokers for the right to execute small investors’ trades.