5 ms·

Coinbase regularly "goes down" or at least large amounts of users unable to login whenever there seems to be a "bank run" - which conveniently will help reduce

by loceng 5y ago

Coinbase regularly "goes down" or at least large amounts of users unable to login whenever there seems to be a "bank run" - which conveniently will help reduce the downward pressure on the price plummeting, so whatever billion dollar buffers or reserves waiting to buy during large selloffs they have - to also counter a total crash - would have pressure reduced on them as well; it might be a very short period of time that a user might need to be blocked out from selling in order to stop "hysteria" or panic selling.

datadata 5y ago
Interestingly, trading for regular stocks on US exchanges is halted for many reasons including when the price moves too fast, a 10% move in 5 minutes automatically gives a 5 minute halt. https://www.nasdaqtrader.com/Trader.aspx?id=tradehaltcodes https://www.nasdaqtrader.com/Trader.aspx?id=tradehaltcodes
- throw10920 5y ago
  Yeah, the conventional financial markets are rigged, despite (or because?) of layers of regulation and "oversight" - the Robinhood-GME incident and banks/individuals that contributed to the 2008 crash getting off scott-free should have been enough to convince most individuals of this.
  - seabird 5y ago
    2008 crash is a decent example of finance being rigged. Robinhood's handling of GameStop is not. They may be a pretty shit brokerage, but DTCC collateral requirements hit everybody, and they just didn't have enough money lying around to deal with that in the way a lot of customers would have wanted.
    - deleted 5y ago
      [deleted]
    - MegaButts 5y ago
      So you agree the DTCC doesn't know how to manage their collateral requirements? It's one of their primary reasons for existing. It seems like something they should've been able to foresee or handle, rather than force brokerages into PCO when they already lost control of the situation. It's really akin to the LME trade halt fiasco, which then became even worse when they retroactively reversed trades. The point is, when they're about to lose money they'll change the rules of the game. If you don't recognize that then you're the sucker at the table.
      - seabird 5y ago
        They know full well how to handle their collateral requirements; that's exactly what they did! The idea that they "lost control" of the situation is pretty wild; how would they have exerted control over it? GME went nuclear in a day, and nobody a week before then would have told you it was going to happen the way it did. Should they require near 100% collateral from brokers on every trade, and everything that comes along with that? And no, them biting the bullet on trades that don't clear isn't a real solution. The ideal situation that would have mitigated it and kept them safe is same-day settlement cycles, but that's not a choice they alone get to make. The LME situation and the DTCC/meme stock situation have very little in common, besides both of them being triggered by extreme price movement. It's much easier to argue that LME was rigging the game, but commodities are a different market that hit a little closer to home when things go bad. If the LME let short hedges get vaporized, the idea that they should have been left out to dry would be very unpopular in the fallout of that situation. Maybe they should have, but you're going to have a hard time convincing people not involved in finance of that. Unless you are an institutional trader, the market isn't out to get you specifically. You aren't even shit on their shoe. You're shit three counties over, if that. They barely think about you. They barely even know you exist. You're background noise that most large players need to filter out to find out who is actually on the other end of the trade. Financial markets are rigged in the sense that big players will be bailed out and cut loose no matter what. They are not rigged in the sense that a retail investor can be on the losing end of a trade because they didn't understand what's actually happening.
        MegaButts 5y ago

by loceng 5y ago

datadata 5y ago

Interestingly, trading for regular stocks on US exchanges is halted for many reasons including when the price moves too fast, a 10% move in 5 minutes automatically gives a 5 minute halt. https://www.nasdaqtrader.com/Trader.aspx?id=tradehaltcodes https://www.nasdaqtrader.com/Trader.aspx?id=tradehaltcodes

throw10920 5y ago
Yeah, the conventional financial markets are rigged, despite (or because?) of layers of regulation and "oversight" - the Robinhood-GME incident and banks/individuals that contributed to the 2008 crash getting off scott-free should have been enough to convince most individuals of this.
- seabird 5y ago
  2008 crash is a decent example of finance being rigged. Robinhood's handling of GameStop is not. They may be a pretty shit brokerage, but DTCC collateral requirements hit everybody, and they just didn't have enough money lying around to deal with that in the way a lot of customers would have wanted.
  - deleted 5y ago
    [deleted]
  - MegaButts 5y ago
    So you agree the DTCC doesn't know how to manage their collateral requirements? It's one of their primary reasons for existing. It seems like something they should've been able to foresee or handle, rather than force brokerages into PCO when they already lost control of the situation. It's really akin to the LME trade halt fiasco, which then became even worse when they retroactively reversed trades. The point is, when they're about to lose money they'll change the rules of the game. If you don't recognize that then you're the sucker at the table.
    - seabird 5y ago
      They know full well how to handle their collateral requirements; that's exactly what they did! The idea that they "lost control" of the situation is pretty wild; how would they have exerted control over it? GME went nuclear in a day, and nobody a week before then would have told you it was going to happen the way it did. Should they require near 100% collateral from brokers on every trade, and everything that comes along with that? And no, them biting the bullet on trades that don't clear isn't a real solution. The ideal situation that would have mitigated it and kept them safe is same-day settlement cycles, but that's not a choice they alone get to make. The LME situation and the DTCC/meme stock situation have very little in common, besides both of them being triggered by extreme price movement. It's much easier to argue that LME was rigging the game, but commodities are a different market that hit a little closer to home when things go bad. If the LME let short hedges get vaporized, the idea that they should have been left out to dry would be very unpopular in the fallout of that situation. Maybe they should have, but you're going to have a hard time convincing people not involved in finance of that. Unless you are an institutional trader, the market isn't out to get you specifically. You aren't even shit on their shoe. You're shit three counties over, if that. They barely think about you. They barely even know you exist. You're background noise that most large players need to filter out to find out who is actually on the other end of the trade. Financial markets are rigged in the sense that big players will be bailed out and cut loose no matter what. They are not rigged in the sense that a retail investor can be on the losing end of a trade because they didn't understand what's actually happening.
      - MegaButts 5y ago