Analysis

How Citadel Damages Price Discovery for All Investors

Price discovery harm from Citadel internalization is a negative externality affecting the entire market — not just PFOF customers.

The Externality

When Citadel internalizes retail orders, all market participants who rely on exchange prices for reference are harmed. Degraded public price discovery is a market failure with economy-wide consequences.

Citadel price discovery harmPFOF externalitymarket quality Citadel

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