ALL REFERENCES MUST BE SOURCED TO CNBC.
KAYLA TAUSCHE: IT IS JUST THE BEGINNING OF THE TALLY FOR LOSES ASSOCIATED WITH FACEBOOK TRADES COMING IN AND I JUST GOT OFF THE PHONE WITH A SOURCE WHO NOTED THAT CITADEL INVESTMENT GROUP OBVIOUSLY RUN BY KEN GRIFFIN IS FACING WHAT THIS SOURCE CALLED SIGNIFICANT LOSSES OVER THE FACEBOOK TRADES OF COURSE KNIGHT CAPITAL COMING OUT YESTERDAY AND SAYING THAT THEY WOULD LOSE ROUGHLY 30 TO 35 MILLION DOLLARS ON THE TRADE AND I’M TOLD THAT CITADEL’S LOSES WILL BE IN THAT RANGE AS WELL. THESE LOSES I’M TOLD CAME AS ACTORS ON BEHALF OF CLIENTS LIKE ETRADE AND TD AMERITRADE THOSE BIG RETAIL OUTFITS THAT WERE ACTING ON BEHALF OF THE RETAIL INVESTORS THAT WERE REALLY INVITED TO GET IN ON THIS DEAL AND BASICALLY WHAT HAPPENED IS CITADEL HELD THEIR PROMISE TO TRANSACT ON BEHALF OF CLIENTS. IF A CLIENT ATTEMPTED A TRADE CITADEL WOULD HOLD THE TRADE EVEN AS THEY WAITED FOR NASDAQ’S WORD ON EXECUTION. AS FAR AS THESE DAMAGES THE DEADLINE WAS MONDAY NIGHT FOR FIRMS LIKE CITADEL LIKE KNIGHT CAPITAL TO SUBMIT THEIR ESTIMATES OF THESE LOSES SO YOU HAVE TO THINK THE NASDAQ IS RUNNING UP ITS OWN TALLY AS WELL.
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