House Panel Adds Citadel and Melvin Capital Executives to ‘Meme Stocks’ Hearing: Report

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Executives from market maker Citadel Securities and hedge fund Melvin Capital were added to the list of witnesses at a House Financial Services Committee hearing on market volatility related to GameStop Corp. and other so-called memes stocks, according to a Reuters report. Executives at online broker Robinhood are already scheduled to appear at the February 18 hearing. All three firms were at the center of GameStop GME’s share price surge during the last week of January, when Robinhood and other brokers briefly restricted buying of shares in the video game retailer following a massive price hike.

Read More: Lawsuits See Conspiracy in Robinhood’s GameStop Movements, But Experts Doubt the Narrative Hedge fund Citadel and Citadel Securities were founded by billionaire Ken Griffin and share some ownership, but are not affiliated. Melvin Capital reportedly turned to Citadel and another hedge fund, Point72 Asset Management, for a $ 2.75 billion ransom after Melvin’s bet against GameStop created massive losses amid rising shares. Although Citadel Securities is a major source of income for Robinhood, the firm said in a statement that it “has not instructed or caused any brokerage firm to stop, suspend or limit trading or refuse to do business.” Robinhood said it halted GameStop purchases because its users were overwhelmingly placing one-way long bets on extremely volatile stocks, often with borrowed money, prompting massive collateral requests from the broker’s clearinghouse.