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Source on your first point? Sounds a conspiracy from r/superstonk

yuy910616 4y ago
I think the OP meant buying partial stock? afaik those are not real trades; robinhood has to house the trades on their books to some extent
- lokar 4y ago
  DTCC holds shares. Everything else is just on brokerage books.
- bdlowery 4y ago
  Every brokerage does that with fractional shares though. It’s not unique to Robinhood.
irjustin 4y ago
Yeah the 1st point is a "conspiracy" in that it's simply not true and what people who dislike Robinhood share amongst themselves as truth. Robinhood has lots of problems, this is not one of them. [edit] Forgot about fractionals where this statement is true, but that's well known/accepted?
- bboygravity 4y ago
  Yes counterfeit stock trading by RH is a conspiracy. But the fact that it happens in the US is not really a conspiracy as it has been documented quite thoroughly. A source/book about it is "Naked short and greedy". Internalizing trades however is less of a conspiracy. Almost all US brokers do this or offer this trade routing option. Here's the head of the SEC stating that almost all retail market orders on any broker never hit a lit exchange and are internalized: https://www.youtube.com/watch?v=wg8onYvJW3Q https://www.youtube.com/watch?v=wg8onYvJW3Q
  - irjustin 4y ago
    Sadly, I can't converse with you if you're willing to modify your original statements. Guess we should've quoted it. Originally this was talking about "fake/not-real ownership of the underlying stock", but now it says (quoting for good measure): > 1. lets people trade "stocks" that aren't stocks the way people think they are. All (convenient) trades (for its HF clients) get internalized and never ever hit any lit market/exchange. The fact that this is possible is a general issue with the US stock market and lack of meaningful regulation and policing. Now you're saying "internalized trading". Well this is 100% true - of all brokerages. So this no longer makes RH bad vs anyone else... you like Robinhood now?
bboygravity 4y ago
I removed the reference to synthetics, because it is indeed a conspiracy/speculation (there can't really be evidence for it even if it's true). Though it has happened in the past and has been documented. Source: "Naked short and greedy" book. There are some more hints though for the whole synthetics conspiracy ongoing. The most recent one, going on right now, being the GameStop stock split through stock dividend failing in Germany, because of DTC/DTCC issues. These types of splits are not uncommon (Google did one a couple of weeks ago without any issues: https://capital.com/google-stock-split https://capital.com/google-stock-split) and I've never heard of a stock split failing due to clearing issues before. So there's that.

I think the OP meant buying partial stock? afaik those are not real trades; robinhood has to house the trades on their books to some extent

lokar 4y ago
DTCC holds shares. Everything else is just on brokerage books.
bdlowery 4y ago
Every brokerage does that with fractional shares though. It’s not unique to Robinhood.

irjustin 4y ago

Yeah the 1st point is a "conspiracy" in that it's simply not true and what people who dislike Robinhood share amongst themselves as truth. Robinhood has lots of problems, this is not one of them. [edit] Forgot about fractionals where this statement is true, but that's well known/accepted?

bboygravity 4y ago
Yes counterfeit stock trading by RH is a conspiracy. But the fact that it happens in the US is not really a conspiracy as it has been documented quite thoroughly. A source/book about it is "Naked short and greedy". Internalizing trades however is less of a conspiracy. Almost all US brokers do this or offer this trade routing option. Here's the head of the SEC stating that almost all retail market orders on any broker never hit a lit exchange and are internalized: https://www.youtube.com/watch?v=wg8onYvJW3Q https://www.youtube.com/watch?v=wg8onYvJW3Q
- irjustin 4y ago
  Sadly, I can't converse with you if you're willing to modify your original statements. Guess we should've quoted it. Originally this was talking about "fake/not-real ownership of the underlying stock", but now it says (quoting for good measure): > 1. lets people trade "stocks" that aren't stocks the way people think they are. All (convenient) trades (for its HF clients) get internalized and never ever hit any lit market/exchange. The fact that this is possible is a general issue with the US stock market and lack of meaningful regulation and policing. Now you're saying "internalized trading". Well this is 100% true - of all brokerages. So this no longer makes RH bad vs anyone else... you like Robinhood now?

bboygravity 4y ago

I removed the reference to synthetics, because it is indeed a conspiracy/speculation (there can't really be evidence for it even if it's true). Though it has happened in the past and has been documented. Source: "Naked short and greedy" book. There are some more hints though for the whole synthetics conspiracy ongoing. The most recent one, going on right now, being the GameStop stock split through stock dividend failing in Germany, because of DTC/DTCC issues. These types of splits are not uncommon (Google did one a couple of weeks ago without any issues: https://capital.com/google-stock-split https://capital.com/google-stock-split) and I've never heard of a stock split failing due to clearing issues before. So there's that.