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Post by ripano on Sept 3, 2021 7:25:04 GMT -5
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Post by BD on Sept 3, 2021 9:09:00 GMT -5
I started one for you. It's not MNKD-specific but I put it on the main board because I wasn't sure where else to put it.
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Post by akemp3000 on Sept 3, 2021 9:25:38 GMT -5
I started one for you. It's not MNKD-specific but I put it on the main board because I wasn't sure where else to put it. Good. Maybe not MNKD specific but we can hope it's very directly related. I look forward to hearing the interpretation of this from a lot of smart members here. Even if not sure, it would be good to hear speculation. |
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Post by awesomo on Sept 3, 2021 9:35:22 GMT -5
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Post by uvula on Sept 3, 2021 10:12:52 GMT -5
Does "member" refer to robinhood, schwab, ameritrade, etc., or individual investors?
Does schwab need to keep 250k in reserve, or does each individual investor who buys on margin need to keep that much cash in their margin account.
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Post by MnkdWASmyRtrmntPlan on Sept 4, 2021 9:34:27 GMT -5
I see your point, uvula. I searched that article for "member" and read all 30 instances. It is confusing at points, and I criticize the author for not being more clear.
Generally, when the author uses the word member, he means an investor. But, the author uses that word too many times, and in various contexts and meanings.
There is one instance where they say "Robinhood, a Member of the NSCC, immediately post an additional $3 billion to its Member Fund Deposit."
So, they they use "member" all throughout to mean investors, but then they throw in that instance of a broker, who is also a "Member" of NSCC, and that they also must maintain money in their "Member Fund Deposit".
Perhaps instead of calling Robinhood a Member of NSCC, they should have called them a Brokerage of NSCC.
So, its the individual investors that must now keep $250k in their account instead of the current/previous $10k minimum.
But, it sounds like the brokerages must also make sure that their customers maintain their minimum margin amounts, and those brokerages may have to deposit money in their margin "Member Fund" in crunch-times. The author does not do a good job of explaining that.
It's always good to have articles proofread before publishing.
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