FINRA Fines Citadel As Documents Reveal Extent of Issue

Financial Industry Regulatory Authority is reported to have fined a unit of Chicago-based Citadel Investments $800,000 for erroneous orders sent to other exchanges.

FINRA: Citadel's orders were mis-priced or duplicated

Reuters is reporting that from March 18, 2010 to January 8, 2013 Citadel did not have in place a supervisory system to check the accuracy of its orders and to reject orders that were mis-priced or duplicated, according to a FINRA letter dated June 12.

In other words, false orders were submitted by Citadel to other exchanges. The motivation for this is unclear, but...