![]() ![]() Robinhood clears its trades through its clearing broker Robinhood Securities, which is a member, along with others, of a central clearinghouse on Wall Street. ![]() Robinhood said its mandated deposit requirements soared ten-fold during the week. We would later learn just how much those deposit requirements increased for the broker. We learned Saturday morning in a new post from Robinhood why, with the broker explaining that the central Wall Street clearinghouse mandated a ten-fold increase in the firm's deposit requirements on the week in order to ensure smooth settlement in trades involving the securities experiencing unprecedented volatility. The young broker that wants to go public this year had to tap credit lines, raise new funds and throttle back trading in a list of the short-squeeze names. The rally backfired on Robinhood, the free-trading pioneer and popular app. A band of amateur traders in WallStreetBets forum, whose members have tripled to 6.5 million in just a week, aimed to bid up heavily shorted stocks "to the moon," creating massive short squeezes that some believe caused a turmoil in the broader market. Shares of the struggling brick-and-mortar video game retailer skyrocketed 400% in the past week, closing out January with a whopping 1,625% gain. GameStop mania took Wall Street by storm, thanks to a legion of retail traders glued to the WallStreetBets message board on Reddit. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |