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Which part is patently false? DTCC is not a government entity thats a fact Vast majority of board members of DTCC represent entities that were in one way or ano
by qaq 4y ago
Which part is patently false?
DTCC is not a government entity thats a fact
Vast majority of board members of DTCC represent entities that were in one way or another on the hook if Melvin and others were to fold. (lent them money, on the hook for lent shares to short etc.)
The restriction were put in place by many brokers not just RH
- JumpCrisscross 4y agoThe lack of transparency bit. All the brokers had margin requirements escalated according to formulas written years, in some cases decades, ago. Robinhood was given additional discretion to come up with capital versus being shut down, as the rules would have required absent discretionary intervention.
- qaq 4y agoOK so a committee of people with financial stake in the matter make an arbitrary decision that incidentally benefits the companies they represent and screws the clients of brokers and thats transparent? The decision making process is def not transparent.
- JumpCrisscross 4y ago> a committee of people with financial stake in the matter make an arbitrary decision that incidentally benefits the companies they represent and screws the clients of brokers and thats transparent Rules were automatically applied. Rules someone with two years in operations should be able to model. The committee met to give Robinhood a bailout. By the rule book, the DTCC had the right to liquidate their collateral. The committee instead chose to take that counterparty risk on themselves, the risk that if Robinhood couldn’t raise emergency capital they’d have to pony up some of their own. And that committee meeting’s minutes are filed with regulators and actions publicly announced, so even there, tons of transparency.
- qaq 4y agoYou keep framing it like it was just RH it was a good number of players including IB. Meeting minutes do not cover things said in hallway :)