×

BREAKING NEWS FROM CNBC’S KAYLA TAUSCHE: CITADEL FACING “SIGNIFICANT” LOSSES OVER FACEBOOK TRADES - SOURCE

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.
About CNBC:

With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD+, CNBC is the recognized world leader in business news providing real-time data, analysis and information to more than 390 million homes worldwide. The network's 16 live hours a day of business programming in North America (weekdays from 4:00 a.m.- 8:00 p.m.) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. CNBC.com and CNBC Mobile Web (mobile.cnbc.com) offer real-time stock quotes, charts, analysis and on-demand video.

Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://www.nbcumv.com/mediavillage/networks/cnbc/