“So the brokerages or the clearing firms have to go into their own pockets to do it. “We cannot use customer funds to front that cost due to regulation,” Denier said. “Our clearing firm simply cannot afford the cost to settle those trades,” he said.ĭuring moments of volatility, the transaction costs can spike due to risk and a variety of factors. For Webull, this was not a nanny move to protect investors from buying at the top and then getting mad nor was it a move to save the hedge funds that were shorting GameStop, Denier said. That’s when the three online brokerages stepped in to put the brakes on the buying. 22 to close at $347.51 the following Wednesday. The stock went from $65 a share at market close on Friday, Jan. Soon, investors betting against the stock - which had faced trouble amid a shift to digital video games - had to buy the stock too, to cover their losses. GameStop’s stock soared as he stepped up his efforts to transform the company, and soon members of a Reddit group called Wall Street Bets began buying up shares in the game retailer. The market for GameStop became unsettled this month after activist investor Ryan Cohen, the founder of Chewy, secured a seat on the retailer’s board of directors. Popd is a new merchandising store concept with a completely new branding, team and organisational structure.
Webull CEO Anthony Denier speaks to Yahoo Finance. This has to do with settlement mechanics of the market.” “It has nothing to do with the decision or some sort of closed room smoke-filled cigar room of Wall Street firms getting together to the dismay of the retail trader. “There is an outcry because a lot of the retail, they don't actually understand the dynamics that happen after a trade,” Denier said. The move has been roundly bashed by politicians on the left and right and caused a wave of anger towards Wall Street for supposedly rigging the system against individual retail investors, and specifically Robinhood for abandoning its core beliefs of “ democratizing finance.”īut in an interview with Yahoo Finance, Webull CEO Anthony Denier explained that the situation was not an unsavory conspiracy against traders who had made money from the so-called short squeeze on GameStop. As trading of GameStop ( GME) got wilder on Thursday, Robinhood, Interactive Brokers, and Webull shut down the buying feature for the beleaguered video game retailer’s stock.
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