Re:Robinhood is said to draw on bank credit lines amid tumult
by snoshy on Friday January 29, 2021 @01:39AM
(#25954731)
Would they though? If settlement was instantaneous for market makers, then obviously settlement with the brokerages would also have to be instantaneous. Then it's no longer an issue of verifying anything, the risk of proving ownership would fall squarely on the brokerages or whoever is initiating the trade with the market maker in the first place.
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Re:Robinhood is said to draw on bank credit lines amid tumult
by acover on Friday January 29, 2021 @08:23AM
(#25956976)
I don't understand your question.
If settlement was instantaneous then to sell a stock on an exchange you'd have to have the stock. To buy you'd have to have cash.
Currently market makers don't have either.