/biz/ - Business & Finance

Check this shit out.
https://www.sec.gov/litigation/apdocuments/3-19798-2020-07-29-answer-to-oip-with-exhibits-1-6.pdf
https://www.sec.gov/litigation/litreleases/2022/lr25427.htm
SEC had a case against some Ukrainian hedgefunds and market makers for spoofing and layering. Vali Management Partners, DBA Avalon FA LTD, LEK securities. Heavy citation from a 2018 deposition hearing of Marin Nitzov from Citadel securities. The case stems from a complaint by Citadel against Avalon around market making activity that is manipulative, but Avalon is making the argument that what they're doing is exactly the same as Citadel. The whole indictment basically comes down to the fact that Avalon was providing directional liquidity and not hedging, thus was not engaged in legitimate market making activity. Which they bring up the interesting accusation that they don't think Citadel is hedging either.
>in fact, one cannot safely assume that Citadel hedged in all instances, let alone that Citadel incurred losses. Further, due to the significant time the alleged “Cross Market Strategy” took, Avalon was exposed to much broader market risk from developments that would potentially affect the market on a macro level.