3 ms·
Sorry to pile on but... What issues does it create if your whole client base suddenly want to buy GME? I guess if volumes overall go up a lot, you might need
by LatteLazy 6y ago
Sorry to pile on but...
What issues does it create if your whole client base suddenly want to buy GME?
I guess if volumes overall go up a lot, you might need to post more capital? But since your revenue should be up too, that's a good thing right? And its only for a while, I don't think anyone thinks this will go on for months do they?
And surely it's easier for your clearing house to clear 1 name than 10,000 names?
For no-frills, long, equity positions, it feels like it should be the easiest thing in the world to do. I'm happy to be corrected, I'm aware back office logistics is a dark art so maybe I and other readers can learn something?
Edit: I'm honestly not trying to be snarky here. I just don't get why it would be that big of a problem. I'd be happy to be rescued from my ignorance.
- sroussey 6y agoGo ask Apex Holdings. https://twitter.com/public/status/1354826467184578571?s=21 https://twitter.com/public/status/1354826467184578571?s=21
- LatteLazy 6y agoThis whole thing is a confusing mess. Do you know why Apex Holdings decided that? Why would a clearing firm do that, they're at no risk afaik...
- saddlerustle 6y agoAlmost all US equities are settled by DTC. Settlement is not clearing, clearing firms still have obligations to DTC
- LatteLazy 6y agoThanks, but I'm still left wondering: why would dtc be unable to settle those trades? It seems like it would be easier for dtc to settle RobinHood trades if they were all (worst case) in one symbol than it is when clients trade 101 different names...