Mamta Badkar and the FT Due Diligence team

There is a little while to wait before the central characters in the story that has dominated Wall Street and Washington start answering lawmakers questions, but their prepared testimonies are a good read. Here are some key quotes.

Gabe Plotkin, founder, Melvin Capital Management:

I am personally humbled by what happened in January. Investors in Melvin suffered significant losses. It is now our job to earn it back.

Keith Gill, aka online retail trader personality Roaring Kitty:

It’s alarming how little we know about the inner-workings of the market, and I am thankful that this committee is examining what happened. I believe an analysis of GameStop’s recent price action must start with a discussion of the exorbitant short interest in the stock, as well as an investigation into any potentially manipulative shorting practices and brokers’ reported failures to timely deliver shares and settle trades.

Robinhood chief executive Vlad Tenev:

What we experienced last month was extraordinary, and the trading limits we put in place on GameStop and other stocks were necessary to allow us to continue to meet the clearinghouse deposit requirements that we pay to support customer trading on our platform.

Reddit chief executive Steve Huffman:

A few weeks ago, we saw the power of community in general and of this community in particular when the traders of WallStreetBets banded together at first to seize an investment opportunity not usually accessible to retail investors, but later more broadly to defend all retail investors against the criticism of the financial establishment.”

Citadel founder Ken Griffin:

During the period of frenzied retail equities trading, Citadel Securities was the only major market maker to provide continuous liquidity every minute of every trading day. When others were unable or unwilling to handle the heavy volumes, Citadel Securities stepped up. On Wednesday, January 27, we executed 7.4bn shares on behalf of retail investors. To put this into perspective, on that day Citadel Securities executed more shares for retail investors than the average daily volume of the entire US equities market in 2019.

Read all their testimonies here

Source link