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They did not follow the risk models required by law. They went beyond that and jacked up the collateral requirements on meme stocks to 100%.
by ummonk 6y ago
They did not follow the risk models required by law. They went beyond that and jacked up the collateral requirements on meme stocks to 100%.
- jcranmer 6y agoMy understanding is that the components on the model that caused the collateral requirements to jump are actually enacted by regulation.
- ummonk 6y agoNo, the point is that while the model would have caused the collateral requirements to jump, that's not all the DTCC did - they enacted a 100% collateral requirement on specific stocks, which is not something the models required.
- selectodude 6y agoHow do you know? Do you write the risk models? There aren't many stocks that swing from +100% to -3% in a day.