Hero or villain? NSCC draws fire for Robinhood margin waiver

Fears of moral hazard after CCP waives billions in margin demands following meme-stock volatility

Risk 0421 Lead Story Stephen Lee NB Illustration
Stephen Lee, www.nbillustration.co.uk

The Robin Hood of legend took from the rich and gave to the people. That myth was turned on its head in late January, when Robinhood Markets – broker to thousands of retail punters betting on so-called meme stocks that had exploded in value – got a call from its clearing house demanding payment of a $2.2 billion special margin charge.

The cash call, which arrived just after 5am on January 28, far exceeded Robinhood’s stated capital on hand and borrowing capacity. The firm was in a panic: if it

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

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