Robin Hood just ended trading on GameStop and AMC

[Anonymous]

Anonymous wrote:Is there any possibility that the Russians were behind this assault on our financial institutions and free market?

No. There's been no assault on either our financial institutions or the free market. What has happened is not unusual. It is only considered unusual because messageboard normalsmdiscovered it. Most of the money pushing things higher is from institutions and market makers not reddit users.

At this point our pension funds and 401ks are the main beneficiaries of the squeeze.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Is there any possibility that the Russians were behind this assault on our financial institutions and free market?

No. There's been no assault on either our financial institutions or the free market. What has happened is not unusual. It is only considered unusual because messageboard normalsmdiscovered it. Most of the money pushing things higher is from institutions and market makers not reddit users.

At this point our pension funds and 401ks are the main beneficiaries of the squeeze.

Also abnormal is only partially suspending trading to drive toward a specific market outcome. I would have less issues if RH just suspended GME trading altogether. What they did seems really corrupt to me.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is there any possibility that the Russians were behind this assault on our financial institutions and free market?

No. There's been no assault on either our financial institutions or the free market. What has happened is not unusual. It is only considered unusual because messageboard normalsmdiscovered it. Most of the money pushing things higher is from institutions and market makers not reddit users.

At this point our pension funds and 401ks are the main beneficiaries of the squeeze.

Also abnormal is only partially suspending trading to drive toward a specific market outcome. I would have less issues if RH just suspended GME trading altogether. What they did seems really corrupt to me.

Thank you for your replies!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is there any possibility that the Russians were behind this assault on our financial institutions and free market?

No. There's been no assault on either our financial institutions or the free market. What has happened is not unusual. It is only considered unusual because messageboard normalsmdiscovered it. Most of the money pushing things higher is from institutions and market makers not reddit users.

At this point our pension funds and 401ks are the main beneficiaries of the squeeze.

Also abnormal is only partially suspending trading to drive toward a specific market outcome. I would have less issues if RH just suspended GME trading altogether. What they did seems really corrupt to me.

Thank you for your replies!

RH restricted buy to only one share of GameStop and dozens of other stocks on Friday as well if you already own at least one share.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is there any possibility that the Russians were behind this assault on our financial institutions and free market?

No. There's been no assault on either our financial institutions or the free market. What has happened is not unusual. It is only considered unusual because messageboard normalsmdiscovered it. Most of the money pushing things higher is from institutions and market makers not reddit users.

At this point our pension funds and 401ks are the main beneficiaries of the squeeze.

Also abnormal is only partially suspending trading to drive toward a specific market outcome. I would have less issues if RH just suspended GME trading altogether. What they did seems really corrupt to me.

Thank you for your replies!

They didn't suspend sales because it could cause their customers to take losses, and for some to face margin calls as well. They did the lightest possible intervention they could come up with.

WSB redditors who seem so "knowledgeable" about gammas and deltas somehow missed the basic fact that RH is putting cash up front to settle transactions. They have regulatory requirements to meet on that because if they go too low, transactions could fail and the market falls apart. What you do *now* takes 2 days to settle. It takes time for money to hit accounts. Sometimes people buy using profits from sales that haven't settled. Sometimes people buy nonmarginable items out of marginable accounts. Sometimes one party doesn't come up with the stock. Most of the time it goes well, but what's happening with GME is hardly "most of the time".

If t there is a legitimate concern it is that RH is a janky startup that doesn't have the resources to handle such a spike in trading volume. You get what you pay for, which is currently $0 per transaction. Put the tinfoil hats away people.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is there any possibility that the Russians were behind this assault on our financial institutions and free market?

No. There's been no assault on either our financial institutions or the free market. What has happened is not unusual. It is only considered unusual because messageboard normalsmdiscovered it. Most of the money pushing things higher is from institutions and market makers not reddit users.

At this point our pension funds and 401ks are the main beneficiaries of the squeeze.

Also abnormal is only partially suspending trading to drive toward a specific market outcome. I would have less issues if RH just suspended GME trading altogether. What they did seems really corrupt to me.

Thank you for your replies!

They didn't suspend sales because it could cause their customers to take losses, and for some to face margin calls as well. They did the lightest possible intervention they could come up with.

WSB redditors who seem so "knowledgeable" about gammas and deltas somehow missed the basic fact that RH is putting cash up front to settle transactions. They have regulatory requirements to meet on that because if they go too low, transactions could fail and the market falls apart. What you do *now* takes 2 days to settle. It takes time for money to hit accounts. Sometimes people buy using profits from sales that haven't settled. Sometimes people buy nonmarginable items out of marginable accounts. Sometimes one party doesn't come up with the stock. Most of the time it goes well, but what's happening with GME is hardly "most of the time".

If t there is a legitimate concern it is that RH is a janky startup that doesn't have the resources to handle such a spike in trading volume. You get what you pay for, which is currently $0 per transaction. Put the tinfoil hats away people.

Other clearinghouses did the same thing. Allow selling but not buying.

And they succeeded in driving prices down, for a while.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Here's a thought: Sometimes both sides get ruined in a short squeeze. I bet no one told WSB that.

Stutz motors crushed the shorts when the CEO bought up its shares. However the leverage it required bankrupted him, and his creditors ended up with the company.

I notice lots of people on WSB using leverage. It's not an army of people with $500 of fun money.

So far this year, by driving up shorted stocks, Gamestop and others, the redditors have cost HFs $70b. This year.

That's not just fun money either.

Uh no.

1. These companies are a small fraction of the $70b. That's all the unrealized losses in the US stock market, which has been going up.
https://www.marketwatch.com/story/short-sellers-down-a-net-54-billion-on-u-s-positions-so-far-this-year-data-provider-says-11611866736

2. It's not actually $70b. It's $71b losses and $17b of gains, leaving a net of $54b. Ortex is the source.

3. You can't count the losses until the music stops. Nobody knows what price these stocks end at, or whether the shorts come roaring back if the price goes down.

I don't like short sellers. Really I don't. But don't be deluded by people passing around a number that you don't understand. Much as I dislike what they do, I worry more that regular people are getting swept up into the reddit and will lose money they can't afford to lose. Yes, you see the occasional warning. But it's drowned out by the near-universal confidence displayed on WSB. If you think they already succeeded at a $70B goal, you are already operating on misinformation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is there any possibility that the Russians were behind this assault on our financial institutions and free market?

No. There's been no assault on either our financial institutions or the free market. What has happened is not unusual. It is only considered unusual because messageboard normalsmdiscovered it. Most of the money pushing things higher is from institutions and market makers not reddit users.

At this point our pension funds and 401ks are the main beneficiaries of the squeeze.

Also abnormal is only partially suspending trading to drive toward a specific market outcome. I would have less issues if RH just suspended GME trading altogether. What they did seems really corrupt to me.

Thank you for your replies!

They didn't suspend sales because it could cause their customers to take losses, and for some to face margin calls as well. They did the lightest possible intervention they could come up with.

WSB redditors who seem so "knowledgeable" about gammas and deltas somehow missed the basic fact that RH is putting cash up front to settle transactions. They have regulatory requirements to meet on that because if they go too low, transactions could fail and the market falls apart. What you do *now* takes 2 days to settle. It takes time for money to hit accounts. Sometimes people buy using profits from sales that haven't settled. Sometimes people buy nonmarginable items out of marginable accounts. Sometimes one party doesn't come up with the stock. Most of the time it goes well, but what's happening with GME is hardly "most of the time".

If t there is a legitimate concern it is that RH is a janky startup that doesn't have the resources to handle such a spike in trading volume. You get what you pay for, which is currently $0 per transaction. Put the tinfoil hats away people.

Overall, suspending trading altogether would have been less distortionary than what they did. It's debatable which is the "lightest possible intervention", if you are looking at impact.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is there any possibility that the Russians were behind this assault on our financial institutions and free market?

No. There's been no assault on either our financial institutions or the free market. What has happened is not unusual. It is only considered unusual because messageboard normalsmdiscovered it. Most of the money pushing things higher is from institutions and market makers not reddit users.

At this point our pension funds and 401ks are the main beneficiaries of the squeeze.

Also abnormal is only partially suspending trading to drive toward a specific market outcome. I would have less issues if RH just suspended GME trading altogether. What they did seems really corrupt to me.

Thank you for your replies!

They didn't suspend sales because it could cause their customers to take losses, and for some to face margin calls as well. They did the lightest possible intervention they could come up with.

WSB redditors who seem so "knowledgeable" about gammas and deltas somehow missed the basic fact that RH is putting cash up front to settle transactions. They have regulatory requirements to meet on that because if they go too low, transactions could fail and the market falls apart. What you do *now* takes 2 days to settle. It takes time for money to hit accounts. Sometimes people buy using profits from sales that haven't settled. Sometimes people buy nonmarginable items out of marginable accounts. Sometimes one party doesn't come up with the stock. Most of the time it goes well, but what's happening with GME is hardly "most of the time".

If t there is a legitimate concern it is that RH is a janky startup that doesn't have the resources to handle such a spike in trading volume. You get what you pay for, which is currently $0 per transaction. Put the tinfoil hats away people.

Overall, suspending trading altogether would have been less distortionary than what they did. It's debatable which is the "lightest possible intervention", if you are looking at impact.

Yes but RH doesn't control that! If they stopped all trades, but NYSE kept going, the price would drop and you wouldn't be able to sell.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is there any possibility that the Russians were behind this assault on our financial institutions and free market?

No. There's been no assault on either our financial institutions or the free market. What has happened is not unusual. It is only considered unusual because messageboard normalsmdiscovered it. Most of the money pushing things higher is from institutions and market makers not reddit users.

At this point our pension funds and 401ks are the main beneficiaries of the squeeze.

Also abnormal is only partially suspending trading to drive toward a specific market outcome. I would have less issues if RH just suspended GME trading altogether. What they did seems really corrupt to me.

Thank you for your replies!

They didn't suspend sales because it could cause their customers to take losses, and for some to face margin calls as well. They did the lightest possible intervention they could come up with.

WSB redditors who seem so "knowledgeable" about gammas and deltas somehow missed the basic fact that RH is putting cash up front to settle transactions. They have regulatory requirements to meet on that because if they go too low, transactions could fail and the market falls apart. What you do *now* takes 2 days to settle. It takes time for money to hit accounts. Sometimes people buy using profits from sales that haven't settled. Sometimes people buy nonmarginable items out of marginable accounts. Sometimes one party doesn't come up with the stock. Most of the time it goes well, but what's happening with GME is hardly "most of the time".

If t there is a legitimate concern it is that RH is a janky startup that doesn't have the resources to handle such a spike in trading volume. You get what you pay for, which is currently $0 per transaction. Put the tinfoil hats away people.

Overall, suspending trading altogether would have been less distortionary than what they did. It's debatable which is the "lightest possible intervention", if you are looking at impact.

Yes but RH doesn't control that! If they stopped all trades, but NYSE kept going, the price would drop and you wouldn't be able to sell.

You mean price would go up.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is there any possibility that the Russians were behind this assault on our financial institutions and free market?

No. There's been no assault on either our financial institutions or the free market. What has happened is not unusual. It is only considered unusual because messageboard normalsmdiscovered it. Most of the money pushing things higher is from institutions and market makers not reddit users.

At this point our pension funds and 401ks are the main beneficiaries of the squeeze.

Also abnormal is only partially suspending trading to drive toward a specific market outcome. I would have less issues if RH just suspended GME trading altogether. What they did seems really corrupt to me.

Thank you for your replies!

They didn't suspend sales because it could cause their customers to take losses, and for some to face margin calls as well. They did the lightest possible intervention they could come up with.

WSB redditors who seem so "knowledgeable" about gammas and deltas somehow missed the basic fact that RH is putting cash up front to settle transactions. They have regulatory requirements to meet on that because if they go too low, transactions could fail and the market falls apart. What you do *now* takes 2 days to settle. It takes time for money to hit accounts. Sometimes people buy using profits from sales that haven't settled. Sometimes people buy nonmarginable items out of marginable accounts. Sometimes one party doesn't come up with the stock. Most of the time it goes well, but what's happening with GME is hardly "most of the time".

If t there is a legitimate concern it is that RH is a janky startup that doesn't have the resources to handle such a spike in trading volume. You get what you pay for, which is currently $0 per transaction. Put the tinfoil hats away people.

Overall, suspending trading altogether would have been less distortionary than what they did. It's debatable which is the "lightest possible intervention", if you are looking at impact.

Yes but RH doesn't control that! If they stopped all trades, but NYSE kept going, the price would drop and you wouldn't be able to sell.

You mean price would go up.

No. RH does not control the GME float. forcing RH customers to hold may serve WSBs purposes, but it could screw people over who have a right to sell their shares.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is there any possibility that the Russians were behind this assault on our financial institutions and free market?

No. There's been no assault on either our financial institutions or the free market. What has happened is not unusual. It is only considered unusual because messageboard normalsmdiscovered it. Most of the money pushing things higher is from institutions and market makers not reddit users.

At this point our pension funds and 401ks are the main beneficiaries of the squeeze.

Also abnormal is only partially suspending trading to drive toward a specific market outcome. I would have less issues if RH just suspended GME trading altogether. What they did seems really corrupt to me.

Thank you for your replies!

They didn't suspend sales because it could cause their customers to take losses, and for some to face margin calls as well. They did the lightest possible intervention they could come up with.

WSB redditors who seem so "knowledgeable" about gammas and deltas somehow missed the basic fact that RH is putting cash up front to settle transactions. They have regulatory requirements to meet on that because if they go too low, transactions could fail and the market falls apart. What you do *now* takes 2 days to settle. It takes time for money to hit accounts. Sometimes people buy using profits from sales that haven't settled. Sometimes people buy nonmarginable items out of marginable accounts. Sometimes one party doesn't come up with the stock. Most of the time it goes well, but what's happening with GME is hardly "most of the time".

If t there is a legitimate concern it is that RH is a janky startup that doesn't have the resources to handle such a spike in trading volume. You get what you pay for, which is currently $0 per transaction. Put the tinfoil hats away people.

Every broker has $0 trades nowadays. You might want to update your talking points.

[Anonymous]

Robinhood is a broker dealer. Full stop. It is heavily regulated. Full stop. They are required to stop trading because they do not have the resources to back it. They have to have a certain percentage of the total volume in dollars to support the trades in case people don't pay or something else happens. When the volume spiked, they needed to have billions more to make the trades flow.

This is a math issue. Not big guy little guy. In any event, RH is the little guy.

[Anonymous]

Anonymous wrote:Robinhood is a broker dealer. Full stop. It is heavily regulated. Full stop. They are required to stop trading because they do not have the resources to back it. They have to have a certain percentage of the total volume in dollars to support the trades in case people don't pay or something else happens. When the volume spiked, they needed to have billions more to make the trades flow.

This is a math issue. Not big guy little guy. In any event, RH is the little guy.

RH should have halted both buying and selling if they had no choice. Full stop. Don't just ban buying but still allow selling and closing of accounts while allowing hedge funds and institutional investors to freely buy and sell (which allowed hedge funds to reduce their losses).

The problem is RH only banned buying and only for retail investors. Full Stop.

[Anonymous]

Anonymous wrote:Robinhood is a broker dealer. Full stop. It is heavily regulated. Full stop. They are required to stop trading because they do not have the resources to back it. They have to have a certain percentage of the total volume in dollars to support the trades in case people don't pay or something else happens. When the volume spiked, they needed to have billions more to make the trades flow.

This is a math issue. Not big guy little guy. In any event, RH is the little guy.

Oh please. People had their own cash ready to buy.
Why did they not stop all trading of those stocks? Why stop only buying?

Who heavily regulates it? I hope it is not SEC, because they have shown that they are pretty much useless.