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Message: [QUOTE="Knicks411, post: 3707452, member: 767"] Not entirely true. Citadel has a market making side, that is separate from the hedge fund, that pays for order flow and executes a lot of trades on RH. (them paying RH for order flow is a big part of the reason RH can offer free trading) They really don't have any crossover with the hedge fund. The mechanics of actually buying and settling all these trades is something that I really wasn't all that aware, mostly because generally it's pretty boring and doesnt matter like 99% of the time. But this was the 1% of the time! RH is basically responsible for the trades until they settle 2 days later. They need to have enough cash/collateral in case the trades fail on settle date. The volatility got so high this week they needed to put up a lot more (10x!) collateral than they normally would. And they didn't have it! [/QUOTE]