Robinhood screwed it's IPO?

Google
doesnt

Go to company page Google

doesnt
Jan 28, 2021 626 Comments

With today's incident of restricting trading of stocks Robinhood screwed it's IPO chances, may be it will start the downward spiral for itself.

Edit: This post has been very active. Can you guys also suggest on which platform to move to for trading after quitting Robinhood. It will be useful for all.

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TOP 626 Comments
  • Citadel
    BrutеForce

    Go to company page Citadel

    BrutеForce
    You need to show growth , not sure what kinda growth they'll be able to show now.

    Really sad for the people working there, they've created a good product. And it's not only Robinhoods fault. But if you pretend to be helping the "regular people" and then do a 180 once big money tells you to, be ready for the consequences.
    Jan 28, 2021 40
    • Shit. Well you should have started with that!

      While I do concede that that is legit, I do not think you knew that while you were arguing before... but alas. 🍽 time for me to eat my words
      Jan 29, 2021
    • Citadel / R&D
      qsGD01

      Go to company page Citadel R&D

      qsGD01
      Hey to be fair, these systems are quite complex and I doubt even the people who work on these know what’s fully going on.

      It’s also why investing can be much riskier than it seems - you’re playing with a labyrinth of regulations and systems, and there’s all these layers of competing interests.
      Jan 29, 2021
  • New / Design
    ⚡️🤝⚡️

    New Design

    BIO
    Zen Out 🐐
    ⚡️🤝⚡️
    Let’s make sure they are screwed regardless of IPO or not.

    Simply by taking our business elsewhere.

    🦍
    Jan 28, 2021 9
  • New
    jfk77

    New

    jfk77
    Wall street will bail them out.
    Jan 28, 2021 5
    • New
      e0rojd

      New

      e0rojd
      You're kidding right?

      Wall Street only bails out its own.

      Robinhood is SV.

      They'll let robinhood rot unless robinhood can turn it around themselves
      Jan 29, 2021
    • Latch / Eng
      puta

      Go to company page Latch Eng

      puta
      Citadel’s got a fat piece of them. Robinhood will be fine.
      Jan 29, 2021
  • Citadel
    BrutеForce

    Go to company page Citadel

    BrutеForce
    Copy paste from hacker news:

    The Depository Trust & Clearing Corporation settles most listed securities transactions in America; in 2011, it did $1.7 quadrillion [1]. You've never heard of it unless you're a professional trader, but it's actually quite fascinating to read up on.

    Trading looks instantaneous. But settlement takes a few days. In between are a series of credit agreements. From your broker to you. From the clearinghouse to the brokers. DTCC is the clearinghouse. Robinhood is the broker.

    There are rules and contracts between DTCC and its members, including Robinhood [2]. Those contracts ensure that when you buy shares through your broker from a Robinhood customer, if Robinhood falls down two days later, there is collateral sufficient to make you whole. Those collateral requirements change in reference to, amongst other things, the volatility of the security. (If a broker falls down, the clearinghouse liquidates their collateral and makes their counterparty whole. More volatility means more chance the collateral will be insufficient.)

    In this case, collateral requirements on GME went up. Because of its volatility. So while before Robinhood had to pony up collateral for a few shares of GME for every hundred it traded, it now had to, at close of business, pony up one hundred shares' worth of collateral for every hundred it traded. That creates a cash crunch. One that exacerbates itself with every additional trade in the security. If Robinhood fails to satisfy those collateral calls, they go out of business overnight. Into receivership. Done.

    Most brokers have policies for these situations. Higher brokerage fees for securities on a schedule. Not making shares and cash from trades available until the trade settles, sort of like what banks do for large cheques. But I don't know if Robinhood is able to do that quickly. So instead they pulled the plug.

    [1] https://en.wikipedia.org/wiki/Depository_Trust_%26_Clearing_Corporation

    [2] https://www.dtcclearning.com/products-and-services/settlement/settlement-services/risk-management/296-risk-management-overview/2277-collateral-valuation-of-securities.html
    Jan 28, 2021 18
  • Facebook / Product
    RoiZL

    Go to company page Facebook Product

    RoiZL
    Robinhood is the next Facebook. Something tons of people will use but has a negative undertone and brand
    Jan 29, 2021 9
    • Facebook
      WFH 🏝🍹

      Go to company page Facebook

      WFH 🏝🍹
      @Rxg5gM exactly, the only people that care about FB are the media... and politicians looking to get media coverage. No one else could give a shit, if they did we wouldn’t be growing users and beating earnings 🤷‍♂️. If we jeopardized someone’s investment then there would be real hell to pay, just like RH is feeling right now.
      Jan 29, 2021
    • The only reason people use Facebook is because all their friends are on it, RH doesn’t have the same lock in. E*TRADE or whatever offers the same exact functionality.
      Jan 29, 2021