yes, 'real victims" of undercapitalized brokerages

[sdholloway56]

in an extreme market event.

From FT: "It is now becoming clearer Robin Hood has a liquidity issue.
The central clearing facility for stock trade known as the DTCC – Depository Trust & Clearing Corporation has raised collateral requirements on GME from 1-3% to 100%. That’s the real reason clearing houses stopped accepting new orders on GME from brokers. The collateral requirements on several stocks has increased due to the extreme volatility. This is why Robin Hood and others have halted or stopped trading on these stocks only. Robin Hood had to increase its credit line at the banks and now allows small trades on GME for 1 or 5 shares basically they cant pay the collateral requirements for the DTCC…..they don’t care about whether you lose or make money. But the settlement risk is a problem, that’s why they limit trading. It’s a good case study that shows the industry could benefit from real time resilient settlement infrastructure"

[BA Deere]

In a "market" where the market makers are shorting 140% of of a company`s stock that`s a lot of nakedness. The "FT" is pointing fingers anywhere but at the shorting hedge funds which is sociopathic. 

[r3020]

" industry could benefit from real time resilient settlement infrastructure"

Yeah. The Hamptons stick the money in their pockets and tells everyone else to go to hades. It's their game in their house with their deck using their rules. They get to change the rules as they will and see fit. They have the Indian to protect them if needed.

[sdholloway56]

The Hamptons are out $20B and any single entity on the other side can take their money and say thank you. Except, maybe some of the biggest but a lot of them are already gone.

They can't all.

Prisoner's Dilemma, and all that's happening now is the transfer to the final bagholders s they create a lot of buzz and lure folks in who want to "get me some of that."

[sdholloway56]

If atual short interest was 140% then there is a huge regulatory failure. But that wouldn't be the fault of the administration in authority, but The Deep State. As it always is.

I'm guessing that oft cited number includes net options?

[r3020]

Might cut into their annual bonus by a million or so. Gona hurt when it's property tax time.

[bruce MN]

That’s what elected officials are declaring that they are looking into, although 30 says it is them that caused it.