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Citadel and Reddit executives Count on GameStop Listening to

Kenneth C. Griffin, the supervisor of billionaire hedge funds, could also be one of many leaders testifying at subsequent week’s Congressional listening to of the latest madcap trade in GameStop shares that has shocked many giant buyers, mentioned an individual with data of the matter.

The enterprise of Mr. Griffin, Citadel, was a central participant within the GameStop drama each for his investments and for the position of his sister firm, Citadel Securities, as a inventory market maker. She was requested to make an govt obtainable for the Feb. 18 listening to scheduled by the Home Monetary Providers Committee, this individual mentioned, however the firm remains to be ready to listen to if the committee will name Mr. Griffin or one other chief.

Steve Huffman, chief govt of Reddit, mentioned Thursday that the social media community additionally plans to take part. Lots of the small buyers in GameStop gathered on WallStreetBets ’RedSit discussion board to debate one another whereas providing the inventory final month.

Citadel had informed the committee that Joseph Mecane, former chief govt of Citadel Securities
Anybody who oversees the advertising and marketing companies it offers to firms like Robinhood would possibly seem as a substitute, the individual mentioned. Citadel Securities is separated from the hedge fund and can also be based by Mr. Griffin.

A consultant of the Home committee didn’t reply to requests for remark. Maxine Waters, the California Democrat who chairs the committee, he mentioned she desires Vlad Tenev, Robinhood’s chief govt, to testify on the listening to.

She additionally mentioned she was contemplating asking hedge fund Melvin Capital to testify.
Citadel’s hedge fund property and a gaggle of companions have invested $ 2 billion in Melvin after Melvin suffered large losses from a guess that GameStop shares – that are priced from lower than $ 100 to just about $ 500 in a couple of days – they’ll fall.

Partly due to his guess in opposition to GameStop, Melvin completed January greater than 53 p.c, the New York Occasions reported earlier this month, whereas Citadel, who had additionally guess in opposition to GameStop throughout his development, it ended the month up 3 p.c.

Griffin was additionally uncovered on the GameStop rally by way of Citadel Securities. Robinhood, the free on-line buying and selling firm that has fueled a lot of the buying and selling on GameStop from novice buyers, earns cash by sending purchase and promote orders to Citadel Securities, which pays Robinhood for the movement of the order.

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