![Risk.net](https://nginx.production.bb8-risk.uk3.amazee.io/sites/default/files/styles/print_logo/public/2018-09/print-logo.png?itok=1TpHrpuP)
Hero or villain? NSCC draws fire for Robinhood margin waiver
Fears of moral hazard after CCP waives billions in margin demands following meme-stock volatility
![Risk 0421 Lead Story Stephen Lee NB Illustration Risk 0421 Lead Story Stephen Lee NB Illustration](/sites/default/files/styles/free_crop/public/2021-03/Risk%200421%20Stephen%20Lee%20Lead%20Story%20NB%20Illustration_0.jpg.webp?itok=Xqfv42Iz)
The Robin Hood of legend took from the rich and gave to the people. That myth was turned on its head in late January, when Robinhood Markets – broker to thousands of retail punters betting on so-called meme stocks that had exploded in value – got a call from its clearing house demanding payment of a $2.2 billion special margin charge.
The cash call, which arrived just after 5am on January 28, far exceeded Robinhood’s stated capital on hand and borrowing capacity. The firm was in a panic: if it
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Risk management
‘More questions than answers’ in race to build repo plumbing
Complexity could slow development of matching and credit-checking tools for US Treasury trades
How Citi moved GenAI from firm-wide ban to internal roll-out
Bank adopted three specific inward-facing use cases with a unified framework behind them
Margin standards are here – and clearing firms aren’t happy
Clearing members complain that latest transparency proposals would force them to act as middlemen by providing margin simulation tools for clients
Riding the storm: banking in the era of climate risk
Climate-related risk is playing an increasing role in banks’ future strategies, resilience and prosperity
Buffer stop: Eurex clearing members shunt default fund
Clearing house’s CRO says both members and clients opt to pay more margin instead
How a serverless risk engine transformed a digital bank
Migrating to the cloud permitted scalability, faster model updates and a better team structure
During Trump turbulence, value-at-risk may go pop
Trading risk models have been trained in quiet markets, and volatility is now looming
Osttra to launch Treasury clearing middleware
Mid-year delivery expected for system that aids credit checking for repo trades