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

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