Portrait of Ken Griffin
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Ken Griffin on GameStop

Opposed to trading restrictions (strong)

TL;DR

Ken Griffin denied that he or Citadel had any role in Robinhood's decision to halt the buying of GameStop shares.

Key Points

  • He testified before Congress on February 18, 2021, that he learned of Robinhood's trading restrictions only after they were publicly announced.

  • Citadel Advisors LLC held both put options (a bet against the stock) and call options on GameStop as of September 30, 2020.

  • Following the event, he called for an overhaul of market structure, specifically advocating for shorter trade settlement times, from two days to one.

Summary

Ken Griffin, as the founder and CEO of Citadel LLC and Citadel Securities, was a central figure during the GameStop short squeeze in early 2021. His firms were heavily scrutinized due to Citadel Execution Services' role as a major market maker executing trades for Robinhood, the brokerage platform favored by the retail investors driving the stock price up. This relationship raised concerns about conflicts of interest, particularly as Citadel Advisors LLC held short positions, though they also had long positions in the stock.

Following the controversy, Griffin faced congressional questioning where he testified that he had no involvement in Robinhood's choice to temporarily restrict purchases of GameStop. His firm, Citadel Securities, also publicly denied instructing any brokerage to stop trading and asserted it provided continuous liquidity during the high-volume period. However, subsequent lawsuits alleged that Citadel applied pressure on Robinhood through communications, including discussions about payment for order flow, to protect their short positions, which Griffin has repeatedly branded as unfounded conspiracy theories.

Key Quotes

Let me be perfectly clear, absolutely not

It is critical that markets remain a “force for fairness and integrity worthy of investor confidence and participation

Frequently Asked Questions

Ken Griffin's position is that neither he nor Citadel colluded with Robinhood to halt buying of GameStop stock. He firmly stated that he had no role in the brokerage's decision to restrict trading. He views the persistent claims of collusion as unfounded conspiracy theories.

Griffin testified under oath that he did not talk to Robinhood about restricting purchases of GameStop or any other meme stock. However, subsequent information from lawsuits alleging private communications about payment for order flow has fueled ongoing public criticism suggesting he was untruthful.

He described the situation as "fascinating to be in the center of that conspiracy" but has repeatedly denied any wrongdoing or collusion with Robinhood. He also used the event to suggest improvements to market plumbing, like shortening the trade settlement cycle.