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A comment on HSBC bans customers from buying Bitcoin-backer MicroStrategy shares. Parent comment

Re:HSBC bans customers from buying Bitcoin-backer MicroStrat... by JumpCrisscross on Tuesday April 13, 2021 @05:32AM (#26790030)
> if customers are buying with cash, it seems pretty suspect for the bank to claim that is increasing the bank's risk exposure

Cash trades still expose brokers to volatility due to settlement.

This policy is likely one part regulatory theatre and one part customer selection. Customers buying MicroStrategy stock are unlikely to be lucrative customers for the banking products HSBC hocks.

[ Parent | on HN ]
Re:HSBC bans customers from buying Bitcoin-backer MicroStrat... by kasey_junk on Tuesday April 13, 2021 @07:37AM (#26790857)
Yeah if they were worried about settlement risk they could just not release funds/shares until they settle. But that’s probably harder to implement than a blanket ban and they have nothing to gain by catering to the meme shares crowd.
[ Parent | on HN ]
Re:HSBC bans customers from buying Bitcoin-backer MicroStrat... by JumpCrisscross on Tuesday April 13, 2021 @10:57AM (#26793051)
> if they were worried about settlement risk they could just not release funds/shares until they settle

This doesn’t solve the problem of clearing collateral. That said, HSBC is a money centre bank. It isn’t worried about clearing collateral.

The policy is almost certainly a filter. If you’re trading MicroStrategy, you’re probably not a fit for their banking and wealth management services.

[ Parent | on HN ]
Re:HSBC bans customers from buying Bitcoin-backer MicroStrat... by kasey_junk on Tuesday April 13, 2021 @03:19PM (#26797651)
Not to get too far in the weeds (as I agree with your point) but why wouldn’t holding the funds/shares until settlement cover the clearing? Especially given they control the order routing and risk systems involved?
[ Parent | on HN ]