So now its…hedge funds vs. hedge funds?
https://twitter.com/modestproposal1/status/1355208503602917381?s=21
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More on the clearinghouse stuff. RH has its own clearing platform, and they couldn’t handle the volatility. Seems like this guy will be called to testify before Congress.
Indeed, Robinhood may have been the latest to build this capability, but it certainly wasn’t the first. The respective clearinghouses established by trading competitors Charles Schwab and TD Ameritrade (Charles Schwab Clearing Services and TD Ameritrade Clearing) were built years ago. Coincidentally, TD Ameritrade reported more than $200 million in revenue made off selling its equities and options order flow in the first quarter of 2020 alone, according to company filings, with $83 million coming from Citadel Securities. In the same quarter, Robinhood reported $91 million in payment for order flow revenue with $39 million coming from the hedge fund. Robinhood’s same total in the third quarter more than doubled to $190 million.
But through all of this week’s volatility, neither Schwab, nor TD Ameritrade had to restrict customer buy orders on GameStop, AMC, or Koss — a point the brokerages recently made absolutely clear when only margin requirements were proactively adjusted.
Given the fact that neither TD Ameritrade nor Charles Schwab resorted to having to suspend even basic buy orders on any security, let along the incredibly volatile movers in GameStop or AMC, it begged the question: What went wrong with Robinhood’s system? And perhaps more pointedly, if Robinhood made this decision to take on the added liability of its own clearing house, why wasn’t the possible volatility addressed before it had to raise an emergency funding round of $1 billion dollars?
“I don’t really want to get into the details of exactly what happened when,” Tenev told Yahoo Finance when pressed about the question.
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A bunch of individual wsb randos causing a short squeeze… Market manipulation.
A bunch of individuals organized as a hedge fund causing a short squeeze… That’s how free markets work.
Wsb should have just organized as a hedge fund duh.
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astronautsalwayshasbeenmeme.jpg
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This is way more interesting than any of the conspiracies I’ve heard flying around the last few days.
Lol Dan Smith fucked around and found out (he shorted obv)
https://mobile.twitter.com/DanSmithHolla/status/1355316663776759810
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It’s interesting how people are usually up even when they’re down.
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CLVS up 4 cents in the after hours!!!
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UPDATE: GME currently at .45 Hondas
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Can you buy cheese on robinhood and can you freeze dogecoin are the next two
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Has this week made you want to rewatch The Big Short? I have good news! You can watch for free (without signing up) on some app called Crackle.
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Fascist WSB poster uses his gainz to buy Switches (from GameStop lulz) for a children’s hospital
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Remember yesterday? Steven Cohen was all like “y so mad? oh you plebs found out trading is hard?”
He literally deleted his account after Portnoy destroyed him.
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This is not the Boomer story I had for 2021: Esiason saying reddit, WallStreetBets, and STONK jockeys on sports talk radio.
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