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I don't even really get all the anger directed just at Robinhood. Apex clearing, which clears for virtually every other new age trading platform (and back in th

I don't even really get all the anger directed just at Robinhood. Apex clearing, which clears for virtually every other new age trading platform (and back in the day RH) also halted these stocks. I'm not sure of the biz aspect of this, but given the criticism RH historically got for pay-for-flow schemes (even while they were using Apex) I would assume it was RH which got the market-flow kickbacks - not Apex. So it's safe to assume that's how it still works today. Yet, Apex also halted orders for these tickers. This goes to show you the very real risk these types of retail clearing companies are facing in this market. So, I'm not absolving RH just saying they might have some real reason to have paused. All this also shows you "there is nowhere to hide". There will always be somewhere somecompany which will put its perceived viability or PR before "sacrificing" for their loyal customers. Especially, given the fact that most of these platforms just one company for clearing anyhow.

Karunamon 6y ago
Robinhood screwed themselves thrice over. If their clearing outfit wouldn't handle these transactions anymore at reasonable prices, that's out of their control. Fine. RH didn't have to send out a patronizing "we're doing this for your own good" email. RH didn't have to continue failing at anything resembling forthright communication. (Including their tweets, blog posts, and outright false in-app messages that implied users sold their own shares and cancelled their own orders) Worst of all, RH absolutely didn't have to sell people's shares out from under them at a dip in GME's price. They were going to burn some amount of goodwill, but that could have been reduced from company-destroying magnitude to mere bad day had they simply not acted shady at every possible point. That last point is probably going to land them in severe legal hot water, their ToS won't mean much especially if/when the SEC comes knocking.
- ROARosen 6y ago
  Your totally right especially about these emails. See here: https://news.ycombinator.com/item?id=25952525 https://news.ycombinator.com/item?id=25952525

Karunamon 6y ago

Robinhood screwed themselves thrice over. If their clearing outfit wouldn't handle these transactions anymore at reasonable prices, that's out of their control. Fine. RH didn't have to send out a patronizing "we're doing this for your own good" email. RH didn't have to continue failing at anything resembling forthright communication. (Including their tweets, blog posts, and outright false in-app messages that implied users sold their own shares and cancelled their own orders) Worst of all, RH absolutely didn't have to sell people's shares out from under them at a dip in GME's price. They were going to burn some amount of goodwill, but that could have been reduced from company-destroying magnitude to mere bad day had they simply not acted shady at every possible point. That last point is probably going to land them in severe legal hot water, their ToS won't mean much especially if/when the SEC comes knocking.

ROARosen 6y ago
Your totally right especially about these emails. See here: https://news.ycombinator.com/item?id=25952525 https://news.ycombinator.com/item?id=25952525