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Why would the SEC punish Robinhood for not having enough collateral to trade very volatile stocks.
by youkoulele 6y ago
Why would the SEC punish Robinhood for not having enough collateral to trade very volatile stocks.
- adjkant 6y agoIANAL but some possible reasons: 1. For lying about that reason to customers 2. for not shutting down all trading on their app (allowing sells of GME without manipulated the market, even if blocking sells would also have bad effects) 3. For allegedly tipping off Citadel before shutting off GME trading (unconfirmed but they will likely investigate this claim)
- youkoulele 6y agoYeah it's worth investigating if they are at fault somewhere. But many people seem to think that the SEC will punish them simply because they stopped allowing people to buy more GME.
- zamadatix 6y agoI think everyone knows it wasn't simply that though, hence the outrage.
- SkyPuncher 6y agoInformation I've seen is they selectively applied that ruling. "Big fish" were still able to get an account manager to process their trades while the button buy was disabled for everything else. There's also a seeming conflict of interest with Citadel's involvement in both RH and Melvin.