Broker Deal Collateral Requirements: Gamestop, Citadel, Robinhood, Melvin Capital
Brokerages | Financial Infrastructure

Broker Deal Collateral Requirements: Gamestop, Citadel, Robinhood, Melvin Capital

The strangest thing about the Gamestop issue was the conspiracy theories around payment for order flow, Citadel and Melvin Capital boss Gabe Plotkin. Some assumed that Robinhood had conspired against their users because their biggest customer, Citadel, was bailing out Melvin Capital.  In fact, the issue was one of collateral. On 27th January 2020, Robinhood…