Citadel creator and CEO Kenneth Griffin.
Andrew Harrer | Bloomberg | Getty Images
WASHINGTON — The Securities and Exchange Commission fined Citadel Securities LLC $7 million in a settlement of charges that the huge broker-dealer company mismarked sales orders over a five-year period, the company stated Friday.
The SEC approximated that Miami-based Citadel Securities significant millions of specific brief sale orders as long sales, and vice versa, from September 2015 to September 2020.
The mistakes were the outcome of a coding mistake in Citadel’s automated trading system, the SEC discovered.
The SEC declared Citadel Securities broke “a arrangement of Regulation SHO, the regulative structure developed to address violent brief selling practices, which needs broker-dealers to mark sale orders as long, brief, or brief exempt.”
A Citadel representative informed CNBC that the matter “had no effect on the quality of our customer execution.”
“While upgrading our systems to accommodate specific customer demands, we made a coding modification that unintentionally impacted a de minimis portion of our order markings,” the representative included.
“We identified the problem and withoutdelay repaired it more than 3 years earlier.”
The SEC in its administrative order settling the case keptinmind that “Citadel Securit