I doubt E-Trade has access to much of Morgan Stanley’s liquidity, that would be absurd. Even they have limitations their parent enforces, and it would be really inefficient to operate with a massive surplus of collateral.
But again I said they may just not have liked tying up so much collateral for a single trade. Different companies with different needs.
And restricting purchases while allowing selling is the fastest way to reduce your collateral requirements. Every share sold is money the DTCC owes you, every purchase is money you owe them.
Lastly, it wasn’t a very useful conspiracy if restricting purchases on this rabble of minor brokers was the method. You could still buy GME across over 90% of the brokers by client base.
Even my broker, InteractiveBrokers, only restricted options. I could buy all day long. Or go long all day by.
But again I said they may just not have liked tying up so much collateral for a single trade. Different companies with different needs.
And restricting purchases while allowing selling is the fastest way to reduce your collateral requirements. Every share sold is money the DTCC owes you, every purchase is money you owe them.
Lastly, it wasn’t a very useful conspiracy if restricting purchases on this rabble of minor brokers was the method. You could still buy GME across over 90% of the brokers by client base.
Even my broker, InteractiveBrokers, only restricted options. I could buy all day long. Or go long all day by.