Citadel paid $88 million to Robinhood in Q3 2020 for “order flow”, making up nearly half of Robinhood’s revenue. Citadel is an investor in funds betting against GME share price. This week, Robinhood prevented customers from purchasing GME shares.

by getToTheChopin

Worth a read:

https://www.washingtonpost.com/business/whats-the-dtcc-and-how-did-it-stop-gamestop-mania/2021/01/29/b23744bc-6257-11eb-a177-7765f29a9524_story.html

https://twitter.com/KralcTrebor/status/1355356755690139650

Looks like the Depository Trust & Clearing Corporation (DTCC) increased margin requirements on GME stock on Thursday — which forced Robinhood to post more collateral.

So the question then becomes, why did the DTCC make its decision, and what conflicts of interest do they have?

 

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