Analysis: Robinhood protected from lawsuits by user agreement, Congress

Re:Analysis: Robinhood protected from lawsuits by user agree... by elliekelly on Saturday January 30, 2021 @01:46PM (#25971718)

> If the story about Robinhood running out of money is true, why wouldn't they just ban buying on margin and not all buying? I don't understand that.

Because DTCC requires cash collateral while the transaction is settled whether the transaction happens in a margin account or a cash account. There's no distinction from DTCC's perspective. DTCC (reportedly) increased the collateral on $GME transactions to 100% of the transaction price compared to the typical 1-3% of the price.

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Re:Analysis: Robinhood protected from lawsuits by user agree... by bmitc on Saturday January 30, 2021 @02:07PM (#25971930)

Thanks for that information. I didn’t know that or about DTCC. Is raising the collateral on transactions like that typical?

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Re:Analysis: Robinhood protected from lawsuits by user agree... by gruez on Saturday January 30, 2021 @02:14PM (#25971996)

Yes https://twitter.com/kralctrebor/status/1354952686165225478

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