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GGnoRE · 01-28-2021, 04:28 PM

Robinhood CEO states they did not collude with hedge funds. Its up to you to believe him or not. And if it makes you feel any better, New York Attorney General Letitia James is looking into this case. https://ag.ny.gov/press-release/2021...d-app-activity

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https://edition.cnn.com/business/liv...eet/index.html

Robinhood CEO: 'We absolutely did not' restrict GameStop trading at the direction of a hedge fund

Robinhood CEO Vlad Tenev explained what he called the platform's "very difficult decision" to restrict buying of GameStop (GME) and about a dozen other securities during a Thursday evening interview on CNBC.

He said the decision was made in response to requirements Robinhood must adhere to as a brokerage firm.

"We have lots of financial requirements, including SEC net capital requirements and clearinghouse deposits — that’s money that we have to deposit at various clearinghouses," Tenev said. He added that such requirements can fluctuate based on market volatility and can be "substantial in the current environment where there’s ... a lot of concentrated activity in these names that have been going viral on social media."

He added: "In order to protect the firm and protect our customers, we had to limit buying in these stocks."

Tenev also shot down speculation spread on social media Thursday that Robinhood restricted regular trading of the volatile stocks at the request of large Wall Street firms. One Robinhood user alleged in a class action lawsuit filed against the trading platform Thursday that the move was made "knowingly to manipulate the market for the benefit of people and financial institutions who were not Robinhood’s customers."

01-28-2021, 04:28 PM	#11023
GGnoRE RS controls my life! Join Date: Mar 2012 Posts: 768 Thanked 562 Times in 245 Posts Failed 62 Times in 18 Posts	Robinhood CEO states they did not collude with hedge funds. Its up to you to believe him or not. And if it makes you feel any better, New York Attorney General Letitia James is looking into this case. https://ag.ny.gov/press-release/2021...d-app-activity ---------------------------- https://edition.cnn.com/business/liv...eet/index.html Robinhood CEO: 'We absolutely did not' restrict GameStop trading at the direction of a hedge fund Robinhood CEO Vlad Tenev explained what he called the platform's "very difficult decision" to restrict buying of GameStop (GME) and about a dozen other securities during a Thursday evening interview on CNBC. He said the decision was made in response to requirements Robinhood must adhere to as a brokerage firm. "We have lots of financial requirements, including SEC net capital requirements and clearinghouse deposits — that’s money that we have to deposit at various clearinghouses," Tenev said. He added that such requirements can fluctuate based on market volatility and can be "substantial in the current environment where there’s ... a lot of concentrated activity in these names that have been going viral on social media." He added: "In order to protect the firm and protect our customers, we had to limit buying in these stocks." Tenev also shot down speculation spread on social media Thursday that Robinhood restricted regular trading of the volatile stocks at the request of large Wall Street firms. One Robinhood user alleged in a class action lawsuit filed against the trading platform Thursday that the move was made "knowingly to manipulate the market for the benefit of people and financial institutions who were not Robinhood’s customers."