{"id":175261,"date":"2021-02-10T23:34:03","date_gmt":"2021-02-10T20:34:03","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ken-griffin-expected-to-testify-at-house-reddit-rally-hearing\/"},"modified":"2021-02-10T23:34:03","modified_gmt":"2021-02-10T20:34:03","slug":"ken-griffin-expected-to-testify-at-house-reddit-rally-hearing","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ken-griffin-expected-to-testify-at-house-reddit-rally-hearing\/","title":{"rendered":"#Ken Griffin expected to testify at House ‘Reddit Rally’ hearing"},"content":{"rendered":"

“#Ken Griffin expected to testify at House ‘Reddit<\/a> Rally’ hearing<\/strong>”
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Congress is eyeing both Main Street and Wall Street to testify at its upcoming \u201cReddit Rally\u201d hearing, including billionaire trader Ken Griffin.<\/p>\n

The hearing before the House of Representatives on Feb. 18 is expected to include testimony from Griffin, founder and CEO of investment giant Citadel, according to Bloomberg, as well as key executives from no-fee trading app<\/a> Robinhood and hedge fund Melvin Capital, according to Reuters. Executives from website Reddit, home to trading forum WallStreetBets, are also expected to appear, a person with knowledge of the hearing agenda told The Post. <\/p>\n

The four firms have been at the center of an epic clash over the manic trading frenzy that sent Game<\/a>Stop shares up more than 1,600 percent last month. The retailer\u2019s stock soared to outrageous heights as day traders on Reddit encouraged each other to make money squeezing Wall Street short sellers, like Melvin. <\/p>\n

The hedge fund, founded by ex-Citadel trader Gabe Plotkin, lost a reported 53 percent in January. And Griffin \u2014 worth an estimated $15 billion, according to Forbes \u2014 stepped in to save Melvin, along with billionaire Steve Cohen\u2019s Point 72 Asset Management, with a $2.75 billion investment. <\/p>\n

But Citadel\u2019s potential role in the bizarre trading phenomenon goes even deeper as it executes many of Robinhood\u2019s trades through its Citadel Securities arm. In fact, Citadel\u2019s deal to pay to process Robinhood\u2019s trading data is largely what allows Robinhood to tout no-fee trading. <\/p>\n

Citadel\u2019s securities arm also clears trades and buys order flow from Robinhood competitors.<\/p>\n

But that relationship has came under fire since Robinhood blocked users from buying popular runaway stocks like GameStop in January. The millennial-focused no-fee trading app has said the trading restrictions, which it\u2019s since lifted, were implemented amid pressure by its Wall Street clearing house to raise $3 billion to support trading in volatile stocks like GameStop.<\/p>\n

But that didn\u2019t stop day traders like David Portoy from accusing Robinhood of setting the limits to protect Citadel and other Wall Street giants from losing money at the expense of small investors. <\/p>\n

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It\u2019s very clear that @RobinhoodApp<\/a> and Hedge Funds like Citadel are saying we\u2019ll take our chances with class action lawsuits and white collar crimes and paying people off to stay out of prison rather than their firms going bankrupt #DDTG<\/a><\/p>\n

\u2014 Dave Portnoy (@stoolpresidente) January 28, 2021<\/a><\/p><\/blockquote>\n<\/div>\n<\/div>\n<\/figure>\n

A spokesperson for Citadel declined comment on Griffin\u2019s testimony, and representatives from Melvin Capital also declined to comment on the hearing. Robinhood and Reddit did not respond to requests for comment.\n <\/p><\/div>\n