Re:Robinhood CEO, Reddit Co-Founder and Others Testify on Ga...
by jcfrei on Friday February 19, 2021 @09:15AM
(#26193353)
In an interview yesterday on CNBC the chairman (and founder) of Interactive Brokers (very large brokerage firm) made a suggestion: Outstanding short interest should be reported daily (rather than monthly as of right now) and margin requirements should increase by 1 percentage point for every percentage point increase of the outstanding short interest.
Overall I think this entire situation is a combination of sketchy abuse of special power (naked short selling and failure to deliver with little/no consequence) and unforeseen side effects (DTCC able to make entire funds, brokers, and exchanges instantly insolvent over night) leading to the Everyman feeling like they have been cheated by the incumbents. I don’t know the correct path forward but I’ve certainly learned more than I’d expected about order flow.