3 ms·
I think--like most outsiders trying to have a technical discussion--you can peel back the onion only so many layers. A true insider would alternatively laugh o
by zaroth 6y ago
I think--like most outsiders trying to have a technical discussion--you can peel back the onion only so many layers.
A true insider would alternatively laugh or cringe at our crude analogies and simplifications of what's really happening inside the factory.
- tptacek 6y agoYeah, I'm trying to use more question marks and hedging "as I understand its" here. I've pentested huge clearing systems before. But I'm not going to lie and say I understood what the hell they were doing (also, the people at those firms made fun of clearing as the most boring conceivable stuff to look at). But (1) lots of experts keep saying that Robinhood can't use customer cash as collateral to DTCC, and (2) DTCC's published rules seem to say that Robinhood owes collateral margin or not. So like, I'm willing to bet that the margin stuff is a red herring, but I'm not willing to WSB-bet it.
- Tenoke 6y agoThe margin accounts seem to be a small part of it but they do tie up RH's cash further thus limiting what they have available for collateral.