> Apple trades an order of magnitude more per day than any of the stocks that were halted. Somehow the clearinghouses have no trouble with the Apple volume.
The clearinghouse had no problem with GME volumes either. They just required collateral. Had Robinhood not been able to meet its obligations yesterday and thus gone under, that collateral would help settle its trades with other brokerages.
Collateral requirements are re-calculated daily. That means there is risk between the last collateral calculation and where an asset is trading today. That risk is a function of volatility. So for a stock like Apple, the DTCC may only require 2% of the value of the trade be put up as collateral. For a stock like GameStop, it may require 100%.
The clearinghouse had no problem with GME volumes either. They just required collateral. Had Robinhood not been able to meet its obligations yesterday and thus gone under, that collateral would help settle its trades with other brokerages.
Collateral requirements are re-calculated daily. That means there is risk between the last collateral calculation and where an asset is trading today. That risk is a function of volatility. So for a stock like Apple, the DTCC may only require 2% of the value of the trade be put up as collateral. For a stock like GameStop, it may require 100%.