Musk was straightforward asking Tenev if there is any shadiness in Robinood’s latest move, especially that it lost traders a big amount of money. However, Tenev said “I wouldn’t impute shadiness to it or anything like that. The NSCC was reasonable subsequent to this.”
Was Robinhood’s move in favor of Citadel?
Musk continued to ask Tenev on whether the company’s move was innocent. Musk asked if Robinhood is intending to impose any future limits on trading. Ironically, Tenev: “I think there’s always going to be some theoretical limit. We don’t have infinite capital.”
Furthermore, Musk tried to quiz Tenev to know if Citadel Securities had a hand in the trading restrictions. Robinhood makes a huge profit from routing orders to market makers like Citadel Securities . Some traders believe that the reasons behind is the move is the relation between Citadel and Robinhood. In January 25, Citadel Securities helped infuse $3 billion into Melvin Capital, a hedge fund that made a bet against GameStop.
