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Interesting counter point to the "elites-pulling-levers-to-protect-hedgies" conspiracy theory: https://twitter.com/arampell/status/1354859474658312196?ref_src=

• ummonk 6y ago
  That's not a counter point. The IB Chairman explicitly said they put in the restrictions to protect market makers rather than their customers: https://www.youtube.com/watch?v=7RH4XKP55fM https://www.youtube.com/watch?v=7RH4XKP55fM
  • xibalba 6y ago
    So, point blank, you believe these restrictions were implemented to protect hedge funds and financial elites? Do you not believe there could be simpler explanations to brokers halting buying of the meme-stonk tickers that are 1) explained by their own financial incentives and risks, and 2) not by a shadowy conspiracy of financial elites pulling levers behind the scenes?
    • platz 6y ago
      The reason he gave in that video was because of margin ("the cust not being able to pay"), which doesn't explain not being able to buy with cash.
  • acover 6y ago
    Forgive me I don't know a lot about this. I think he is talking about protecting intermediaries like the clearing houses and the exchanges themselves. The exchanges only work if counter party risk doesn't exist. To solve this, the exchanges back stop every trade and act as one common counter party [0]. He is concerned that there is a $15 billion loss out there due to options on GME. This could wipe out the intermediates guaranteeing the trades. Further that $15 billion can grow arbitrarily as GME is in a short squeeze and disconnected from reality. [0] - https://www.cmegroup.com/clearing/risk-management.html https://www.cmegroup.com/clearing/risk-management.html