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“On Jan. 28, Robinhood halted trading of several rallying stocks including GameStop and AMC Entertainment”

No, Robinhood did not halt trading. They prevented _buying_ Gamestop and only allowed selling which can only do one thing - drive the price down.

That’s entirely different.

There’s a word for it: manipulation

It’s illegal.

discuss

rodiger|5 years ago

Motivation determines if it's illegal. There's plenty of legal precedent for brokers setting assets to liquidation-only when they might not meet their margin requirements.

gmethowaway|5 years ago

What was the motivation when multiple brokers disallowed buying GME stock using non margin accounts?

maest|5 years ago

They did it to avoid going out of business due to DTCC collateral calls.

Stop spreading FUD.

mdoms|5 years ago

If you believe this narrative I have a bridge for sale. Here's an obvious litmus test: did they re-open buying for GME after they raised an additional billion[0] which easily covers them in this position?

[0] https://www.ft.com/content/9a1b24e6-0433-462a-a860-c2504ea56...

gmethowaway|5 years ago

Can you please elaborate on why DTCC collateral calls or other things should prevent buying GME stock on non-margin accounts, like many brokers did? If you trade more, it actually brings more money to brokers. I'm not talking about options or margin here, that's a different story and broker's risk management is involved.

asdffdsa|5 years ago

Only allowing selling and not buying of stock is most certainly manipulation. Please vet your acronyms more thoroughly

cccc4all|5 years ago

No they did not. The Robinhood co founder stated in every interview that it was not liquidity issue.

Listen to his explanations, he never says what were the legal or business justification for stopping the buys and only allowing the sells.

His only explanations were that the company took the actions just because.