Robinhood, in Need of Cash, Raises $1B from Its Investors

Re:Robinhood, in Need of Cash, Raises $1B from Its Investors by cashewchoo on Friday January 29, 2021 @09:07AM (#25957333)

Huh I didn't know that. The firm I worked for did self-clearing, and we had no customers (prop trading). I guess that means these requirements didn't really matter for us because everything was ours?

[ Parent | on HN ]

Re:Robinhood, in Need of Cash, Raises $1B from Its Investors by IG_Semmelweiss on Friday January 29, 2021 @09:25AM (#25957480)

even if you self clear , you are still a broker clearer and you end up touching the DTCC.

This is exactly what Robinhood is doing too.

This twitter user explains, although it gets quite technical:

https://mobile.twitter.com/wallstcynic/status/13550134381546...

Look at the tweet at 7:41PM EST.

" But if RH takes in 500m of new money and 300m buys GME, then at minimum they are looking at posting 30m+ from just that exposure at NSCC. They cannot use client money - RH has to use their own resources to post. And if GME stock drops, RH has to post the loss pre-settlement."

[ Parent | on HN ]

Re:Robinhood, in Need of Cash, Raises $1B from Its Investors by lukeramsden on Friday January 29, 2021 @11:47AM (#25959302)

Last I heard, the DTCC have raised collateral requirements on GME from 1-3% to 100%. Seriously. That's the real reason clearing houses stopped accepting new orders on GME from brokers.

[ Parent | on HN ]

Re:Robinhood, in Need of Cash, Raises $1B from Its Investors by floxy on Friday January 29, 2021 @12:52PM (#25960175)

Is there a way for a regular person to see the current DTCC collateral requirements for a particular stock?

[ Parent | on HN ]

Re:Robinhood, in Need of Cash, Raises $1B from Its Investors by toomuchtodo on Friday January 29, 2021 @01:02PM (#25960286)

I believe this is only available in the Collateral Monitor dashboard that institutions that must post collateral have access to.

[ Parent | on HN ]