The Investment Thread (6 Viewers)

[superchuck500]

I am pretty sure webull did in the morning session and Etrade did in the afternoon. Not sure about other brokers only allowed to hold or sell.

Webull Follows Robinhood in Blocking GameStop, AMC Trades After Being Suggested as Alternate Trading Platform (newsweek.com)

E-Trade confirms it halted GameStop and AMC stock, will let you buy some Friday - The Verge

Thanks.

My sense of it is that what TDA and E-Trade and the like did was technical - it was impacting their trading functionality. But the limits didn't last that long (except for margin and credit-based trades, which is a different issue). Robinhood, on the other hand, appears to have taken the action it took for business reasons - it was not comfortable with the clearing risk it was taking. Or at least that's their public explanation, it could be more problematic than that given their relationship with Citron.

Perhaps a hearing on the Hill would shed more light on it. But I don't think lawsuits are going to get anywhere.

 

[superchuck500]

Robinhood positing that the two-day trade settlement process (that it alleges prompted it to take the action it did as a business necessity) is antiquated and should be improved.

It’s Time for Real-Time Settlement - Robinhood Newsroom

By Vlad Tenev, CEO and Co-Founder, Robinhood It’s time for T+2 to go. Last week we saw the impact the

blog.robinhood.com

 

[superchuck500]

AMZN crushed earnings.

Bezos transitioning to Chairman in Q3, won't be CEO anymore.

 

[Arathrael]

Maybe I'm missing something though, is there evidence of any other major platforms limiting GME (or AMC) the same way that Robinhood did, by having periods of 'sell only' or limiting all purchases of shares?

Quite a few globally, I think. Revolut (who provide a UK based banking services app) sent an email out earlier today:

From today, we will only be able to facilitate the selling of GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC) stocks for the time being. Unfortunately, our broker-dealer in the US, DriveWealth, can no longer offer Buys on these stocks due to increased capital requirements set by the Depository Trust Company (DTC) in the US.​

​

It went on to explain:

Why is this happening?​

When a stock is traded, it takes two days for the proceeds to go from the broker to the clearing house. This is known as T+2 settlement. Within this time, the clearing house requires the broker to front cash or capital guarantees to ensure funds are available through the settlement process.​

​

The required amount of capital is usually around 10-15% of the value of a security’s holdings on broker’s books. However, this percentage can vary based on stock volatility. In the case of GME and AMC, the DTC has enforced an increase of capital requirements by 250% upon DriveWealth’s clearing partners.​

​

This increase means that DriveWealth is now obligated to restrict trading in GME and AMC, as each stock has its own capital requirement rather than a broker wide requirement.​

​

Similarly, Freetrade had to do something similar for the same reason, US execution partner stopped supporting buys for a while (https://community.freetrade.io/t/2nd-february-2021-gme-amc-nok-buys-now-enabled/35843). So I'd think a fair few others would have been hit by the same thing as well.

 

[efil4stnias]

AMZN crushed earnings.

Bezos transitioning to Chairman in Q3, won't be CEO anymore.

Absolutely crushed... 100B in q4 revenue. My gosh.

I think Bezos stepping down has muted the euphoria.

I hope it goes red so I can get back in it.

Mammoth company.

 

[Poison]

Maybe I'm missing something though, is there evidence of any other major platforms limiting GME (or AMC) the same way that Robinhood did, by having periods of 'sell only' or limiting all purchases of shares?

Yes. We received a notification before market open that Stake (who initially placed limit orders on GME, AMC and NOK) would no longer be permitting people to purchase those stocks because their broker-dealer doesn’t comply with certain capital requirements.



Apparently a lot of international apps use DriveWealth. Stake services the UK, Australia, New Zealand and parts of Asia. We don’t have many alternatives to directly trade US shares down here either, and nothing to get up and running within a couple of days. It has basically excluded us from the market.

EDIT: just saw Arathrael’s post above.

 

[DaveXA]

Absolutely crushed... 100B in q4 revenue. My gosh.

I think Bezos stepping down has muted the euphoria.

I hope it goes red so I can get back in it.

Mammoth company.

Yep, if I had $$$, I'd be right there as well.

 

[Chris]

Bezos transitioning to Chairman in Q3, won't be CEO anymore.

Stock split coming up. Well, I'm guessing since Bezos was always against it.

 

[efil4stnias]

Stock split coming up. Well, I'm guessing since Bezos was always against it.

Please do.

 

[Kegger]

Stock split coming up. Well, I'm guessing since Bezos was always against it.

The move isn't until Q3, and even then he's staying on the board of directors as Executive Chair. I'm guessing no split in the near term, though it could use one.

 

[GrandAdmiral]

I can't believe where the price for AMZN is now considering I bought in at $700/share.

 

[efil4stnias]

I can't believe where the price for AMZN is now considering I bought in at $700/share.

I considered myself crazy when I bought at 1300. Alas sold at like 1798.

 

[superchuck500]

 

[DaveXA]

The move isn't until Q3, and even then he's staying on the board of directors as Executive Chair. I'm guessing no split in the near term, though it could use one.

Thought he was stepping down now and chair until Q3?

 

[El Caliente]

I am looking to move my money to an ETF. Is anyone in an ETF that they would (or wouldn’t) recommend? I am leaning towards VOO, but I am searching for ideas I was not aware of.