My wife is at Blackrock and it’s super restrictive. Neither her nor I can trade without pre-clearance and sometimes it takes hours. For a couple of months in 2020 TSLA was not allowed at all with no justification. That’s why we moved a lot into crypto
Once we get approval, i guess we can buy/sell next day
Approval is valid only for that day you got the approval. You would need to submit clearance request every day you want to trade. Also tesla has been on firmwide block list for some time now, so there are still many stocks and etfs you won’t get approved for.
What about etfs, ark ones?
Were approved to trade (at least ARKK, with the large holding of TSLA) as of two months ago. Block lists change often, and there's no transparency to employees, so this feedback doesn't mean much.
Approvals and declines are automatic now... through a pta system
Policy currently is as follows: individual stocks and etfs need to be precleared. Min holding period of 60 days if selling at a profit. Cannot buy back the stock at a lower price than where you sold 60 days following the sale. Precoearance not guaranteed. Many large cap stocks can be restricted due to funds buying for a long time period (both buy and sell). Been trying to buy big cap stocks.. Keep getting rejected for some stocks for a long Precoearance only valid for a day.
What about dividends that are reinvested automatically by Robinhood? Is pre-clearance needed for that too?
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I used to work @ blk and every time you wanted to a make a trade, you must submit all of the trades you want to make before you make the trade and you need them to sign off before you make the trade. Otherwise, you could be fired for not doing so. Generally speaking, most trades were approved with some exceptions here and there. Their list is ever-changing, so it’s difficult to say for certain if your submission will be approved or not. I had no issue getting approval for the trades that I made. I heard from some directors and md’s that during the financial crisis, employees there were restricted from purchasing bank stocks, like Citi. But, this was before my time, so can’t really speak to that.
Thanks, this helps. So mostly we can trade with some exception. How long that approval is valid? And how much time it take to get approval? How minimum i need to hold the share
They say that approval can take up to 24 hours, but have received same-day approval. I can’t recall the minimum hold time, but if I wanted to share after a couple of months, they will look into it and ask you questions. So, be prepared for that. And as McKinsey keenly pointed out, if you have a spouse, you both need to have your trade approved in advance.