Ken Griffin, founder and CEO of Citadel. Picture: REUTERS/MIKE BLAKE
Ken Griffin, founder and CEO of Citadel. Picture: REUTERS/MIKE BLAKE

Washington — Ken Griffin, Citadel’s billionaire founder, and Robinhood Markets CEO Vlad Tenev will testify next week at a House of Representatives hearing on wild swings in GameStop shares and other stocks.

Melvin Capital Management chief Gabriel Plotkin, Reddit co-founder Steve Huffman and Keith Gill, a Reddit user credited with inspiring GameStop’s rally who’s known by his YouTube name “Roaring Kitty”, will also appear before the House financial services committee, the panel said on Friday.

Additional witnesses may be named to testify at the virtual hearing set for noon on Thursday, according to a statement from Maxine Waters, the California Democrat who leads the committee.

Tenev is likely to face questions about the role his firm’s popular trading app played in the tumult as legislators hear for the first time from executives whose companies were at the centre of the volatility that shook markets.

Citadel and Melvin are also important players in the drama, which has sparked investigations into potential market manipulation and calls for greater scrutiny of mobile trading apps, short-selling rules, broker solvency and social media.

Griffin controls one of the largest hedge funds as well as Citadel Securities, the market maker that handles much of Robinhood’s trading. The investment firm — a separate entity from the market maker — with Griffin and others invested $2bn in Melvin, which suffered steep losses from its GameStop positions.

Legislators may ask about potential reforms to protect retail investors who fuelled the rise. Some endured losses, prompting concern they took risks they didn’t understand or couldn’t afford.

In the Senate, banking committee chair Sherrod Brown, an Ohio Democrat, has also indicated that he plans to hold a hearing on the matter.

Bloomberg

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