Timeline for Why would a financial institution prevent their clients from trading a specific security?
Current License: CC BY-SA 4.0
18 events
| when toggle format | what | by | license | comment | |
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| Jan 29, 2021 at 14:21 | comment | added | Grade 'Eh' Bacon | ... then that would be an injustice which I truly hope that will be thoroughly investigated given the spotlight on the situation. | |
| Jan 29, 2021 at 14:21 | comment | added | Grade 'Eh' Bacon | @jamesqf to be clear - I do not currently see evidence that Robinhood and other brokers closed the option to buy shares of GME out of a conspiracy; to me, what makes the most sense is HFT not allowing shares to be bought when they believed a price drop was imminent, which would have caused them massive losses, with the add-on that Robinhood may have felt some duty or other benefit in helping retail investors from losing their money. The injustice I'm referring to is that, in the hypothetical where Robinhood was effectively bribed or acting out of self-interest against retail investors... | |
| Jan 29, 2021 at 3:32 | comment | added | Fattie | This answer is junk - I'm the world's biggest conspiracy theorist, and hater of the government-banking complex, but the issues at hand just have nothing to do with this. | |
| Jan 29, 2021 at 3:25 | comment | added | chrylis -cautiouslyoptimistic- | @Clay07g Just wait till you make the mistake of following a Politics HNQ. | |
| Jan 28, 2021 at 23:25 | review | Low quality posts | |||
| Jan 28, 2021 at 23:57 | |||||
| Jan 28, 2021 at 23:19 | comment | added | Clay07g | I thought Stack Exchange had standards for answers. What is this? "People who own the market"? This answer is basically: "Because the man wants to put you down". Surely that's not acceptable here. | |
| Jan 28, 2021 at 23:15 | comment | added | jamesqf | @Grade 'Eh' Bacon: Re "every injustice in the world", where's the injustice in this situation? Yes, a certain number of gullible "investors" are going to lose their money, since they'll be left holding overpriced GameStop stock when the bubble finally bursts. But they chose to be gullible (or driven by really stupid socio-economic ideas, which amounts to the same thing), so at worst it's merely Darwinian. | |
| Jan 28, 2021 at 22:45 | comment | added | Criticizing Israel not allowed | My hypothesis: Melvin was in trouble. Everyone knew that. Citadel just happened to be processing these orders that were putting Melvin in trouble. Citadel saw a really easy way to get some money: just bail out Melvin, then stop the orders, then let Melvin repay with interest. (Or they bought equity in Melvin, idk) - not necessarily any prior or systemic collusion, just this one instance of ad hoc collusion. | |
| Jan 28, 2021 at 20:31 | comment | added | 7529 | Robinhood already had an arrangement with Citadel. | |
| Jan 28, 2021 at 20:09 | comment | added | RonJohn | @BobBaerker this is what happens when you give free money to sophomores. Imagine the chaos with universal basic income. | |
| Jan 28, 2021 at 19:46 | comment | added | Bob Baerker | It's a conspiracy whenever the authorities step in to regulate, enslaving the average Joe in order to protect the corporacracy. Free the Redditors !!! ;->) | |
| Jan 28, 2021 at 19:45 | comment | added | RonJohn | Downvoted for lack of evidence. Will rescind if you add a substantive citation. | |
| Jan 28, 2021 at 19:38 | history | edited | Bob Baerker | CC BY-SA 4.0 |
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| Jan 28, 2021 at 19:30 | comment | added | Criticizing Israel not allowed | @Grade'Eh'Bacon surely they have exposure to Melvin Capital's failure as a result of the backstop agreement, whatever it was? Therefore they would seek to prevent it | |
| Jan 28, 2021 at 18:58 | comment | added | Grade 'Eh' Bacon | This is a dangerous supposition that, if proven true, would be illegal. I am not naive enough to think that every injustice in the world is resolved, but this is very much in the spotlight, far increasing the risk of impropriety. The notion as well that 'the people who own the market' would act outside their own self-interest [Citadel, to my understanding, holds no short positions on GME as a result of the backstop provided to Melvin Capital], is silly conspiracy stuff. | |
| Jan 28, 2021 at 18:29 | comment | added | Criticizing Israel not allowed | Can you elaborate on how this happened in practice? What did Citadel do to cause RobinHood to even care? | |
| Jan 28, 2021 at 18:29 | comment | added | JonathanReez | Yep, most likely Citadel and Melvin called-in some favors with their golf buddies at the SEC, who then pressured Robinhood and the like to stop the trades. We'll probably see a movie about this in the next few years. | |
| Jan 28, 2021 at 18:10 | history | answered | paulj | CC BY-SA 4.0 |