We're going to guess that the options exchanges being sued by Citadel and three other firms plan to dispute the following statement.
“There is no dispute that the exchanges improperly charged fees to the market makers on millions of orders over an approximately 7-year period,” according to the complaint. “The dispute arises from the exchanges assertion that they are entitled to mischarge their members without taking any responsibility for it and without any liability under the law.”
The investment firms said the overcharges partly stem from the exchanges wrongly assessing market maker-to-market maker orders with “payment for order flow” fees….
The charges were assessed between January 2004 and June 2011, according to their complaint. One firm, identified in the court document only as the “subject firm” paid the defendant exchanges nearly $6.4 million during that time for mis-marked orders.
The market-maker plaintiffs said they seek “recovery or restitution of all PFOF fees that were inappropriately charged by the exchanges.”
Citadel Securities Sues CBOE Claiming It Was Overcharged [Bloomberg via BW]