It looks like the Depository Trust & Clearing Corporation (DTCC) increased margin requirements on GME stock on Thursday -- which forced Robinhood to post more collateral -- which drove Robinhood's decision to prevent users from buying more GME shares.
This adds another piece to the puzzle.
We need more clarity on: Why did the DTCC make its decision? Was that decision properly communicated to the market, or did some firms get early access to the info? What conflicts of interest do they have? Was the DTCC lobbied by other Wall Street players to make that change on Thursday?
Please don't cross into personal attack, even when someone else is misinformed or you feel they are. The cost of a putdown like this is higher than its benefit. Perhaps you don't owe article authors better, but you owe this community better if you're participating here.
If you know more, that's great, but then please share some of what you know so the rest of us can learn.
Comments
Author of the article here -- agreed with you -- a key piece not covered is the relationship between Robinhood and the clearing houses.
I've been learning more about that over the past 24 hours thanks to reader comments on reddit.
I will amend the article when I finish my research.
Some background info:
https://www.washingtonpost.com/business/whats-the-dtcc-and-h...
https://twitter.com/KralcTrebor/status/1355356755690139650
It looks like the Depository Trust & Clearing Corporation (DTCC) increased margin requirements on GME stock on Thursday -- which forced Robinhood to post more collateral -- which drove Robinhood's decision to prevent users from buying more GME shares.
This adds another piece to the puzzle.
We need more clarity on: Why did the DTCC make its decision? Was that decision properly communicated to the market, or did some firms get early access to the info? What conflicts of interest do they have? Was the DTCC lobbied by other Wall Street players to make that change on Thursday?
You should stop writing “in depth” articles when you are so woefully misinformed about this event.
Please don't cross into personal attack, even when someone else is misinformed or you feel they are. The cost of a putdown like this is higher than its benefit. Perhaps you don't owe article authors better, but you owe this community better if you're participating here.
If you know more, that's great, but then please share some of what you know so the rest of us can learn.
https://hn.algolia.com/?dateRange=all&page=0&prefix=true&sor...