Hero or villain? NSCC draws fire for Robinhood margin waiver
Fears of moral hazard after CCP waives billions in margin demands following meme-stock volatility
The Robin Hood of legend took from the rich and gave to the people. That myth was turned on its head in late January, when Robinhood Markets – broker to thousands of retail punters betting on so-called meme stocks that had exploded in value – got a call from its clearing house demanding payment of a $2.2 billion special margin charge.
The cash call, which arrived just after 5am on January 28, far exceeded Robinhood’s stated capital on hand and borrowing capacity. The firm was in a panic: if it
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