41–50 of 69 posts
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Is there any actual evidence this is true beyond just internet accusations?
There is evidence, was involved in it. Someone else took a screenshot. https://i.redd.it/86xuz0p7w2e61.jpg RH is a front for organised crime, selling data to Citadel so the can front run retailers trades. Hope to see Senate action on it at some point.
there's no way to bet against freshly issued IPOs, right? I think for both shorting puts, there's a lockout period after the stock is issued. And limited inventory for borrowing. Or has that changed? I see almost all recent high-flying IPOs as overly inflated investor cashouts. Steve Blank had a post about this...
>there's no way to bet against freshly issued IPOs, right? Sell call options? Buy puts?
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This is very important to know. Robinhood actively colluded with their hedge fund owners, by blocking buy orders — but not sell orders — under the guise of “increased margin requirements”. In fact, those margin requirements were being set by Robinhood’s prime broker and investor, Citadel Securities — who were set to lose billions if retail were allowed to keep buying.
>under the guise of “increased margin requirements”. >In fact, those margin requirements were being set by Robinhood’s prime broker and investor, Citadel Securities To clarify, you're saying NSCC(DTCC) National Securities Clearing Corporation was instructed by Citadel to increase margin requirements? Example story: https://www.cnn.com/2021/02/01/investing/robinhood-gamestop-... Regardless of whether NSCC acted indepe…
What is integrity?
This definitely calls for that one four-panel image macro with drake saying no thanks in panel one to something in panel two, and approving in panel three to what’s in panel four. You know the one right? So then panel two: Buying meme-stocks And panel four: Buying stonks in the platform that everyone is using to buy meme-stocks. It’s too bad that I don’t actually have any money to buy Robinhood IPO though :^) :’)
You must have missed the 420 memos where clearly bizarre fuckery around "meme stocks" was supported by Robinhood suspending trading of them, resulting in a mass migration from RH to Fidelity and others. You probably shouldn't talk condescendingly about things you clearly are so behind on.
Which part of my comment seemed condescending to you? For the record, no part of it was intended to be.
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> The only people allowed to naked short are market makers The SEC made naked short selling illegal after the 2008 financial crisis. Market makers are not allowed to naked short. > Clearing houses don't lose anything during a short squeeze, as long as funds committed to a trade actually clear Exactly my point — as long as funds clear , which they were at risk of not doing, thus putting clearing houses like the DTCC o…
> The SEC made naked short selling illegal after the 2008 financial crisis. Market makers are not allowed to naked short. Actually, they are allowed to naked short. It’s essential for them to be able to do so to hedge their exposure and provide a bid/ask at all times. https://www.sec.gov/investor/pubs/regsho.htm
These valuations are crazy - meaning one of two things are going to happen in the mid-term. Either we see inflation outside of asset prices (wage rises, increased consumer spending) and the revenue of these companies rise to justify the valuations, or we don't see that inflation and these stock prices slide since they can't justify their values. Now I'm not an economist - so maybe someone can help me out here. If the…
Of course, that's assuming Uber's valuation is sane, which is not a bet I'd personally be willing to take.
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> The only people allowed to naked short are market makers The SEC made naked short selling illegal after the 2008 financial crisis. Market makers are not allowed to naked short. > Clearing houses don't lose anything during a short squeeze, as long as funds committed to a trade actually clear Exactly my point — as long as funds clear , which they were at risk of not doing, thus putting clearing houses like the DTCC o…
Do you have evidence that Citadel is RH’s prime brokerage? Being an executing broker or a trading counterparty or paying for order flow has nothing to do with being a prime brokerage or clearing RH’s trades.
Before that they used Apex.
This commenter seems disastrously uninformed about something they have very strident beliefs about.
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Do you have evidence that Citadel is RH’s prime brokerage? Being an executing broker or a trading counterparty or paying for order flow has nothing to do with being a prime brokerage or clearing RH’s trades.
RH self clears: https://blog.robinhood.com/news/2018/10/9/introducing-cleari... Before that they used Apex. This commenter seems disastrously uninformed about something they have very strident beliefs about.
Nonetheless, all the conflicts-of-interest between Citadel, Robinhood, and Melvin still stand. Citadel own Melvin, Citadel are market-makers for Robinhood, Citadel are members of the DTCC, Robinhood users cost Melvin billions, Citadel are footing the bill.
These valuations are crazy - meaning one of two things are going to happen in the mid-term. Either we see inflation outside of asset prices (wage rises, increased consumer spending) and the revenue of these companies rise to justify the valuations, or we don't see that inflation and these stock prices slide since they can't justify their values. Now I'm not an economist - so maybe someone can help me out here. If the…