A lot of people are blaming Robinhood CEO Vlad Tenev and the heads of other major trading platforms for the stock trading restrictions that we witnessed last week, but it was actually the DTCC that suddenly jacked up deposit requirements ten-fold.
There had been speculation that the big hedge funds leaned on Robinhood CEO Vlad Tenev and the heads of other large trading platforms directly, but the truth is more complicated.
It turns out that the pressure on Robinhood and other major trading platforms came from the clearinghouse level.
One or more decision makers at these shadowy entities decided to put an extraordinary amount of pressure on Robinhood and other trading platforms.
For now, Robinhood and other trading platforms will continue to restrict trading in certain stocks as we begin a new week.
Robinhood will continue to limit trading on Monday in short-squeeze names like GameStop that have experienced explosive rallies and unprecedented volatility over the past week.
The millennial-favored stock trading app did cut down its list of restricted stocks from as many as 50 on Friday to eight starting Monday.
Monday, February 1, 2021
These Are The Shadowy New York Financial Institutions That Forced Robinhood To Restrict Trading In Certain Stocks
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