Robinhood DTCC Collateral Waiver Revealed in GameStop Short Squeeze Fallouttimeline_event

regulatory-capturefinancial-regulationrobinhooddtccgamestop-short-squeeze
2021-02-05 · 1 min read · Edit on Pyrite

type: timeline_event

In January 2021, the Depository Trust & Clearing Corporation (DTCC) granted Robinhood an unprecedented $9.7 billion collateral waiver during the GameStop short squeeze. This extraordinary measure prevented Robinhood from defaulting on its regulatory obligations, revealing significant gaps in financial regulatory oversight. The waiver allowed Robinhood to continue trading despite massive market volatility, raising questions about the transparency and discretionary power of clearing institutions.