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A comment on Robinhood, in Need of Cash, Raises $1B from Its Investors. Parent comment

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.
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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?
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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.
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