Citadel Securities Settles for $7 Million Over Short-Sale Rule Violations

Citadel Securities, a Miami-based broker-dealer, has agreed to pay $7 million to settle charges brought by the U.S. Securities and Exchange Commission (SEC) for incorrectly handling millions of orders and violating short-selling rules. The SEC found that Citadel Securities had mistakenly marked short sales as long sales and vice versa due to a coding error in its automated trading system. The firm also provided incorrect data to regulators during this period. Citadel has agreed to pay the penalty, address the coding error, and review its programming and coding logic.