During the winter of 2021, Robinhood Securities, a brokerage firm popular with retail investors, temporarily restricted trading

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During the winter of 2021, Robinhood Securities, a brokerage firm popular with retail investors, temporarily restricted trading certain highly volatile securities, including shares of GameStop. The DTCC had become concerned that Robinhood would be unable to fulfill its rapidly increasing collateral requirements. Why would Robinhood risk alienating its customers by restricting trading in GameStop and other securities experiencing such frenzied trading? What else might Robinhood have done to assure the DTCC that it would be able to fulfill its collateral requirements?

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