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This is probably the most fascinating thing I've read so far on the subject. Given that many other brokerages seem to be doing the same as Robinhood, is it safe
by CSSer 6y ago
This is probably the most fascinating thing I've read so far on the subject. Given that many other brokerages seem to be doing the same as Robinhood, is it safe to assume they also are not accounting for such situations?
Also, another user shared a link above where Robinhood claims there are two types of brokers, introducing and clearing, and describes themselves as the latter[0]. Is that at all relevant here? If I understand correctly, "clearing house" is still a distinct concept that is very much involved.
[0]: https://robinhood.com/us/en/support/articles/whats-clearing-by-robinhood/ https://robinhood.com/us/en/support/articles/whats-clearing-...
- JumpCrisscross 6y agoThanks! > Robinhood claims there are two types of brokers, introducing and clearing Clearing brokers interface directly with the the clearinghouse, i.e. the DTCC. Introducing brokers clear through a clearing broker. (Who in turn interacts with the clearinghouse.)