Roaring Kitty to testify on GameStop alongside hedge fund managers • Hacker News Board

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#211

Post by ric2b » Tue, Feb 16, 2021, 10:38 PM UTC

MattGaiser wrote: post #31

stingraycharles wrote: post #15

Earlier quoted context omitted.

Was a change in collateral requirement something that was known / codified in some agreement, or was it an ad-hoc decision?

> How a clearinghouse judges these risks, and therefore when it makes demands for more upfront funds, is typically formulaic. Margins can be based on equations such as value-at-risk. Exactly how the formula works, and who is responsible for losses in what order, are important elements. In the case of National Securities Clearing Corp., losses would be covered by the defaulting member’s funds before the clearinghouse’…

No, they say it "is typically formulaic".

It's quite possible that this time it wasn't.

I'd say it's very likely that it wasn't formulaic this time, since Robinhood's CEO said in an interview with CNBC that we was called at like 4AM, well after markets closed, to deal with the new requirements.

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#212

Post by ric2b » Tue, Feb 16, 2021, 10:40 PM UTC

gruez wrote: post #138

avereveard wrote: post #131

Earlier quoted context omitted.

of course, but if you buy without margin the balance in your account should already be enough to cover the collateral.

But it's not the brokerage's money on the line, it's DTCC's. From the perspective of the DTCC, there's no difference between a retail brokerage buying $10M of GME and lehman brothers buying $10M of GME.

But if the brokerage already has your money they can use it to post collateral. And yet they banned everyone from buying. A lot of stuff doesn't add up here.

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#213

Post by ric2b » Tue, Feb 16, 2021, 10:48 PM UTC

valuearb wrote: post #157

5350-uiop-1130 wrote: post #38

What about Musk making tweets about bitcoin whilst his company has a large investment. Isn't that market manipulation or maybe does not apply to rogue billionaires.

There is no proof Tesla owns BTC. All company assets need to be auditable, ie an auditor can physically verify their presence. There is no way to do this with Bitcoin, which is a huge problem for public companies buying it.

BTC is more auditable than most/all assets.

Tesla simply needs to show the auditor their addresses and use the respective private keys to sign a message of the auditor's choosing.

The signed message proves they own those addresses, and the holdings can be easily verified on any block explorer or node.

This process can even be done remotely in a single afternoon, I don't know of any other asset class that is this easy to audit.

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#214

Post by valuearb » Thu, Feb 18, 2021, 3:54 AM UTC

ric2b wrote: post #213

valuearb wrote: post #157

Earlier quoted context omitted.

There is no proof Tesla owns BTC. All company assets need to be auditable, ie an auditor can physically verify their presence. There is no way to do this with Bitcoin, which is a huge problem for public companies buying it.

BTC is more auditable than most/all assets. Tesla simply needs to show the auditor their addresses and use the respective private keys to sign a message of the auditor's choosing. The signed message proves they own those addresses, and the holdings can be easily verified on any block explorer or node. This process can even be done remotely in a single afternoon, I don't know of any other asset class that is this easy…

Thanks, I hereby revoke my assertion.

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#215

Post by codecamper » Mon, Feb 22, 2021, 12:59 PM UTC

bsanr2 wrote: post #174

anfogoat wrote: post #156

Earlier quoted context omitted.

> What a fantastic way to ensure that only The Right People (TM) can make money off of anything To be fair though, this is why the regulators exist. And they've got their post government careers to worry about so they will have to do something behind this supposed calamity. But don't worry, like the owner who crams their cat into a brightly colored sweater, they're doing it to protect you.

This argument is equivalent to supporting the IRS going after small-time tax cheats because the big boys - with billions in public revenue lost by their fraud every year - are "too difficult" to prosecute. Regulators exist to prevent the most dire threats to a system - the system being the American economy, not simply financial markets (and their profits). They should act like it. If a crisis manufactured by Wall Str…

Not really.

It's about removing leverage from the system.

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#216

Post by codecamper » Mon, Feb 22, 2021, 1:01 PM UTC

ramblerman wrote: post #204

zht wrote: post #203

Earlier quoted context omitted.

No you can absolutely sell options (even uncovered)

Ah wow didn't know that. Then I join your initial sentiment.

Not really my point that selling options is the problem.

imo, allowing < 25k account holders to buy short dated options should not be allowed due to their outsized effect on stock price. And the tendency for that price rise to snap back like an overstretch rubber band. It's just creating more volatility.