as someone who actually works in finance, I've just decided it's not even worth engaging with people on reddit, trying to explain that the actions of RH and oth

as someone who actually works in finance, I've just decided it's not even worth engaging with people on reddit, trying to explain that the actions of RH and other brokers is justified. There too much of this "us vs. the evil Wall Street system" going on for people to actually listen to reason. Nobody gives a fuck about the fact that, if RH continued to sell shares and options to customers, they would be liable for billions in damages, and a whole host of related entities (clearing house, market markers they work with, etc) would be in the shit. It would effectively "break the system". Of course, that's what some people want. However, don't blame them for not wanting to sell customers illegal services, just because the customers feel entitled to it. Also, there's this huge misconception that the markets are "free", and that means anyone can participate. Soooo not true. First of all, you don't get to rock up to any market and just ask to buy or sell stuff; only trusted members of that exchange actually have the right to do that. Even hedge funds with direct market access are usually sponsored by a broker, so while they get to submit their own orders, the broker oversees the flow and can pull the plug, because the fund is trading on their good word. Some funds (like one I used to work for) go as far as actually buying a seat on the board of major exchanges, like the CME, and that seat itself is worth millions or tens of millions of dollars. that's the premium you pay for market access. Maybe now people understand why RH would rather play it safe and anger their customers rather than piss off literally the entire market and get kicked out, along with the clearing house and market makers going bust in the process. It's bad for everybody - even the retail traders, because their assets become worthless when there's nobody left to fulfill the trade.