Re:Class Action Lawsuit Filed Against Robinhood
by JumpCrisscross on Thursday January 28, 2021 @06:44PM
(#25951178)
Thanks!
> Robinhood claims there are two types of brokers, introducing and clearing
Clearing brokers interface directly with the the clearinghouse, i.e. the DTCC. Introducing brokers clear through a clearing broker. (Who in turn interacts with the clearinghouse.)
Also, another user shared a link above where Robinhood claims there are two types of brokers, introducing and clearing, and describes themselves as the latter[0]. Is that at all relevant here? If I understand correctly, "clearing house" is still a distinct concept that is very much involved.
[0]: https://robinhood.com/us/en/support/articles/whats-clearing-...