ICYMI The $GME ripple effect was so strong that clearing houses (those insitutions that ensure when two sides trade, both get the asset or the cash) were unable to deliver stocks for a short period of time. That is the reason they increased margins for brokers, which is...
... the reason that #RobinHood had to restrict trading (along with other brokers) as they could no longer afford the margins at clearers. This is the only reason trading was restricted. Regulators really not doing themselves a favor by repeating "will protect small investors"...
... all the time. This was a move that was necessary to protect the entire financial market from collapsing. Not more and not less. It was not an attack on small traders nor a support of HFs. It also did not stop the bleeding. FWIW professional investors were also unable to...
... trade $GME in the direction and size they wanted for a period of time.
So I repeat: restricting trading in some stocks was a market wide phenomenon. It was not limited to #Robinhood, but of course the larger the broker you use, the likelier they can put up more collateral.
So I repeat: restricting trading in some stocks was a market wide phenomenon. It was not limited to #Robinhood, but of course the larger the broker you use, the likelier they can put up more collateral.
Case in point. This is after already drawing credit lines. They simply protected their business at #Robinhood.
https://twitter.com/nytimesbusiness/status/1355496001382002688?s=20
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