News for hackers. Stuff that matters.

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

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 ]