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Surely this is only a problem if customer's dont have the cash. Eg I can imagine if people were funding their account with ACH or credit card payments it takes
by u678u 6y ago
Surely this is only a problem if customer's dont have the cash. Eg I can imagine if people were funding their account with ACH or credit card payments it takes weeks to clear. It makes sense that RH would ban these from buying GME. But if you have cleared cash in your account I still dont see the cash crunch.
- Red_Leaves_Flyy 6y agoI'm amazed that it still takes this long to clear financial transactions. Seems like no matter what retail customers always get the short end.
- u678u 6y agoHonestly with free stock trading retail is getting a pretty good deal. People can complain all day but it isn't a profitable business any more.
- rswail 6y agoSo what you're saying is by disintermediating share/derivative trading, one level of middlemen has been made obsolete? Sort of like travel agents and airfares? Why is this a problem? The fact that the share trading market is keeping these middlemen in place is part of the exploitation of the process. Market makers perform a useful function in terms of maintaining an orderly market. Brokers don't. Especially ones that offer credit to their customers, thus hiding the risk to the counterparties of a trade.
- rswail 6y agoInteresting that the old and creaky financial settlement clearing for cash is creating a liquidity problem in the market for shares and derivatives. AU/CA/EU have instant settlement of cross-entity transfers now, but not sure what the underlying clearing/settlement is. If the US had a modern ACH, I wonder how it would have affected this current situation?