Robinhood GME halt: please explain

Adobe / Eng
HaroldWren

Go to company page Adobe Eng

HaroldWren
Jan 29, 2021 12 Comments

Ok, I tagged on RH as much as any of you but been reading a lot about trade settlement requirement on brokers and am willing the re-examine my ire, but:

1. RH has a relationship with citadel, which is somewhat incriminating since they are loaning money to Melvin
2. Doesn’t RH have their own clearing house? Seems like they should have seen this coming, no?
3. While “it was impossible for brokers to execute those trades”, fidelity and Schwann managed just fine
4. The volume is about 50 mil shares. That’s high, about 2x “normal volume” (though normal has obviously been growing in the last month) but it is about the average volume of Tesla. RH handles a lot of various securities and while most of us are dumping money in GME we are not dumping money into TSLA or anything else. I get the requirements are higher but are they really that fragile? My real-time prod services will not blink at 5x the average daily volume (100x I’ll probably get paged). I get that this is a huge move for GME but minuscule for the market.
5. There was no communication, no warning... thank for the explanation 24 hours later but have any of you ever done something bad and then had time to think about it, talk to lawyers, see what others have done and some time later come up with a perfectly reasonable explanation? In conjunction with 1 this is peculiar, no?

comments

Want to comment? LOG IN or SIGN UP
TOP 12 Comments
  • Google
    kurian💯

    Go to company page Google

    kurian💯
    Occam's Razor
    They colluded with the short sellers

    Every other explanation is too complex. Too many unanswered questions. Too many coincidences.
    Jan 29, 2021 8
    • Google
      cjykfni

      Go to company page Google

      cjykfni
      “The answer every party gives is the same thing” really? That’s your bar? SEC hasn’t told anything yet. Let’s wait. There is no evidence yet, because there is no investigation yet.
      Jan 31, 2021
    • Yes but innocent until proven guilty. If there hasn't been an investigation let's assume that there was no conspiracy and take their word for it. If proof comes up that shows they did it then we can say there was a conspiracy
      Jan 31, 2021
  • Facebook
    oh hi mark

    Go to company page Facebook

    oh hi mark
    Just look at the timing of their halt on Thursday, and restrictions from 5 to 2 to 1 shares on Friday, and the corresponding GME price drops. If that’s not manipulation and artificial price suppression, I don’t know what is.

    The brokers restricting retail purchases have singlehandedly kept GME from hitting $1K this week, IMO.
    Jan 29, 2021 0
  • Google
    owqJ68

    Go to company page Google

    owqJ68
    It's not about volume, it's about their bets going sideways.
    Jan 29, 2021 0
  • Exabeam
    Fleet00

    Go to company page Exabeam

    Fleet00
    It is their and clearinghouse risk exposure for the 3 days delayed settlement date for stock and option. Still, they should be prepared and stop some high risk options and raise the stock margin requirement. Should not go to the extreme.
    Jan 29, 2021 0