Welcome back to the channel everyone today, i want to do a bit of a recap of the sec versus citadel court case. I want to go over some of the key points and some of the crazy things that the citadel lawyer actually admitted to so stay tuned and let's make some money, and now i want to dive straight in with the key information. So i want to start by playing you this clip, which is basically all of the key points all in one. What citadel were basically trying to do today was to sue the sec for imposing new rules to protect retail investors and argue for unprotected quotes, even after front-running millions of retail investors.

But let's play the clip and hear some of the key points. If liquidity providers like it they'll go there and liquidity takers will have to go to get the liquidity, that's what canada did when they did. The same thing no protected quotes. Let everybody have incentives to use the exchange and then decide.

Let the marketplace decide i'll i'll i'll. Stop! Judging! Oh! No! No judge! Walker! If you have another question, please go ahead, uh just one more, then it the your last statement about just letting the market force you know play out here. It seems to be that's what iex wants to do, and it's you who is going to a federal agency and saying stop a private entity iex from doing what they want to do. You're the one who's trying to kind of regulate your way into a market victory.

So i all respect, judge walker. I i think we see it a little bit differently right, which is we. We don't want the exchanges, that's right to interfere with the market forces themselves. Private parties in the marketplace through buying and selling, should be determining prices, not the exchanges.

The exchange act says they are meant to facilitate a fair and open market, not that they're meant to pick winners and losers and reprice their quotes, but even if you think i'm wrong about that, i think clearly they're not pro market force on the rule 611 side. If they really believed this innovation story, they would do what cboe did when it submitted its proposal. It didn't say its quote should be protected. It said, let us do this.

The commission disagreed it flipped here for reasons it hasn't really addressed, but what iex wants is the best of both worlds. It wants to be able to do the innovation, but then say that these quotes are protected, notwithstanding the regulatory texts so that it can lock liquidity takers into coming there, which drives up its revenues, because, let's be really clear, judge walker iex makes money in two ways. It makes money by having protected, quotes at the best bid and offer and by having more trading volume. This change hasn't driven up in the real world.

It's actual executions, it's not actually helping the market, but it does drive up the amount of liquidity it has at. What's called the nbo the best bitter offer, and that means more money by the millions for miss stetson's client. If they want to do that in the marketplace, let them do it, but they should not be able to do it by virtue of rule 611 either, because the regulatory text is clear or because they can't qualify for kaiser because they flipped or because at a minimum. Even if the de minimis exception exists, they didn't analyze it here in this order, with respect to displayed prices at a minimum, this court should vacate remand with vacature of that part of of the the order, and obviously we have not discussed today the remedy, but you Know i think, uh.

Clearly this is the standard. If you, if you're going to remand, you should vacate. Thank you very much. Um case is submitted.

Thank you. This honorable court is now adjourned until tuesday october 26 at 9 30 a.m. So basically, what's going on here is the citadel lawyer is saying that markets shouldn't really price themselves. Buyers and sellers shouldn't really decide the price.

There should be a private entity like citadel that tells them the price. Basically, citadel should be able to tell them the price and make as much money as they possibly can ripping off the sellers and also ripping off the buyers. Now obviously, that second point there was sarcasm, but it just goes to show that really the market should be pricing itself. The buyers and the sellers should decide the price between them and they don't need somebody like citadel to control the price and, on top of this citadel's lawyer, just admitted that latency arbitrage existed at least 10 to 12 years ago, and back then citadel may have engaged In it, but right now he says it doesn't exist anymore and citadel doesn't engage in latency arbitrage, which is obviously ridiculous, because latency arbitrage does still exist and that's why high frequency trading firms are out there and obviously citadel does engage in it.

The citadel lawyer also, then contradicted himself and citadel blamed iex for latency arbitrage. Citadel's argument is that iex is too fair reading between the lines a little bit and stepping back from what was truly said. If citadel buying 900 apple stocks from other exchanges out of a thousand and then get the last 100 apple stocks from the iex, it would cost them more because the iex system sees the increase in demand and raises the price. You know like how a fair and free market should work in the past systems could not respond fast enough for the price to change, so citadel always won citadel could always get those last 100 stocks for the same price or even cheaper and then sell it to The customers for even more than they paid for it the speed bump, is a box of fiber optic cable that adds about 350 milliseconds to the order to ensure the price is moving correctly.

It effectively causes a little bit of a delay after the order is placed to ensure the correct and fair price is received, and the kicker for citadel this box of cables costs 27 000 and defeats billions of dollars in research and infrastructure for citadel hen. Griffin ran a new fiber line from chicago all the way to new york, just to shave off some micro seconds of execution time and the fact that a 27 000 box of hardware mitigates all of this is hilarious, and this is why latency arbitrage does still exist Because of the fact that this new cable was ran to shave microseconds off of the execution time, but citadel systems are so rigged, they make it look like one working as a free market is a bad thing now. Currently, most people don't have a lot of confidence in the stock market. You've got these big institutions and big market makers.

They get all of these exemptions. There's a massive lack of reporting and it basically seems like all of the normal rules and regulations. Just don't apply to them, but when investing in cryptocurrency like bitcoin and ethereum, it's much more of an even playing field, and that's why i personally use blockfy to invest in cryptocurrency. If you use the link in the description down below and deposit at least a hundred dollars, you can get a free 250 of bitcoin just for signing up and depositing, and not only can you just buy some bitcoin with blockfi.

You can also earn interest on your deposits also paid in bitcoin, so you can accumulate more and more bitcoin as time goes by and then, when you've generated a massive profit on your investment. Instead of having to sell off all of your newly acquired bitcoin and potentially miss out on the next run-up, you can take out a crypto backed loan with block 5. on top of this block fight also offer a rewards credit card with an introductory rate of 3.5 Cashback on your purchases also paid in bitcoin, so you can accumulate even more there's, also no annual fee, but unfortunately the credit card's only available in the us and not in the uk as well and now also as andrew tweeted. Here the fact that 8 000 plus people watching the citadel versus sec case this morning shows how retail traders are coming together and being heard, definitely a stepping stone for retail traders and it wouldn't have been possible without amc and gamestop.

And he also said the united states court of appeals for the dc circuit averages, like 300 views per live stream, and we had 8 000 concurrent viewers today and a total viewership of 66 000 views. Now, that's absolutely incredible, and hopefully more of you will also turn up for tomorrow's live stream as well, and also, i think that kate stetson from the iex deserves some credit for being absolutely on fire. Judge walker said: are you saying the 40 of citadel's trading? They claim is on behalf of retail. Investors could actually be latency, arbitrage and kate said a hundred percent.

The only people able to exploit the micro seconds in question here are firms like citadel. I think it's super important that the lawyer from iex is doing such a brilliant job and seems to be on our side and is obviously fighting for iex and also the retail investors. Hopefully, tomorrow we can tune in and continue to see, kate absolutely wipe the floor with the citadel lawyer, and now i also wanted to touch on and talk about the short squeeze spring theory. Buying and selling pressure acting on a spring has a maximum limit of compression that must be released upon reaching that point.

So for the short squeeze spring theory, you first have the initial phase of short pressure, pushing downwards on the price and buying pressure pushing upwards on the price. Now this is where we have a lot of volatility at the start of the cycle. We see huge green candles of buying pressure, followed by huge red candles of short pressure of those shorts opening up new positions. We then have the compression displacement phase or where we are right now, where shorting pressure and buying pressure is fairly equal and therefore we see a lot of sideways trading.

And finally, we have the squeeze squeeze phase or the mother of all short squeezes, because the shorts must cover if buyers are still applying, that buying pressure. Now, obviously, when you have a spring and you begin to compress it, it obviously gets tighter and tighter until it's reached its maximum compression point when it's reached its maximum compression point. All of that energy has to explode somewhere either the top explodes upwards or the bottom. Explodes downwards, because obviously energy cannot be destroyed, the shorts must cover if buyers are still buying the stock and holding the stock as well.

Basically, if you look at this chart, you can see the bottom stays broadly similar, but the top has increased massively setting a new all-time high in the amc price. To explain that theory, the bulls and bears, or apes and hedgies do the opposite of a tug of war and compress the price within a spring. The spring will launch upwards when the shorts cover, and then it goes through the actual mathematical equation of how a spring works. So what is that theory? The short squeeze spring theory explains that buying and selling pressure acting on a spring has a maximum limit of compression.

That must be released upon reaching that point, and the poster is also working on his own equation. That should be able to find the exact value of that critical compression point. Now. What that critical compression point is is basically the point at which buying and selling is equal.

Obviously, the start of the cycle. You have a lot of big green candles and a lot of big red candles. Those green and red candles then get progressively smaller. As time goes by until that midpoint or critical compression point is reached, and now also cat striker has managed to get her mobile billboards live and they're circling the courthouse in washington dc and also the sec headquarters.

Now this is brilliant because it brings more public attention to what's going on in the market. At the moment it doesn't just spread the message among current apes. It spreads the message to new members of the public that might be unaware of what's truly going on now. You can also now directly root your order on the fidelity app.

If you delete your app and then reinstall, you can get invited to the beta program and follow the steps below i've also got a full, step-by-step guide, linked in the description below here. In case, you want a more detailed and more explained guide on how to route your orders directly to the exchange with the fidelity app for ios users, go to the profile, tab and then into settings, and then into the trade section and look for direct trading toggle. The feature on review and agree to the disclosures and then the next time you place a trade you'll, be prompted to select which way to route your trade. This is brilliant, because fidelity are now allowing you to route directly to the iex through the fidelity app so that you don't have to log on to the desktop platform.

Guys be sure to. Let me know down in the comments below what you thought of today's court case between the sec and citadel and as always guys, if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to the channel and ding that notification bell, because that way, you'll be alerted when i upload a new video cheers.