Risk.net

 
‘Sheriff’ tussles with Robinhood

What stopped the WallStreetBets short squeeze on surging meme stocks? Risk.net has been delving through clearing house NSCC’s rule book to find out why it hit Robinhood – broker of choice to many of the retail punters betting heavily on the shares – with a $2.2 billion special margin charge just after 5am on January 28. According to the clearing house’s rule book, a broker’s excess net capital premium charge starts building when a substantial amount of its deposit requirements is higher than its total net capital. On January 28, Robinhood’s total value-at-risk deposit was around $1.4 billion – far higher than its net capital of roughly $486 million.

Read the full article

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: