Reply to Robin Hood just ended trading on GameStop and AMC

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=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.[/quote]

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.[/quote]

Why you wanted them to force their customer to risk losing everything in a big drop???  WSB is not RH's customer.  The customer is! If you are mad that some of them sold, that's on you.

And once again, RH does not control the market for GME.  They have no power over (or duty to) institutional investors, fidelity's customers, or any customers besides their own.  [/quote]

DP.

While I am appalled at what RH did (well mostly at how NYSE and regulatory bodies just folded their arms and watched), I agree that they would have been in bigger trouble if they had halted selling and the price dropped. I cannot even begin to imagine the outrage if someone was prevented from selling at 300  and the price dropped on Friday to 100.

However, RH must have known that stopping buying but not selling also hurt their customers' ability to sell at a better price.  Come on now.

Why not give notice to NYSE, OTC, SEC or whoever the heck is supposed to be in charge that you(RH) are in a bind?

The least they could do was send an e-mail to every single one of their customers Wednesday night letting them know that they were in a bind and you have to resort to drastic measures.

The  nonchalant way in which they did this and the way the regulting agencies handled it is very sketchy. [/quote]

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