Thanks for this. I just realized that there is something missing from the Robinhood/Gamestop/trading halt/regulatory oversight discussion. You touched on it your discussion of the clearing houses (which requires another rabbit hole - what is the right collateral?).

An effectively managed brokerage house should have all the necessary policies, procedures, credit limits, and account approvals in place to protect from reasonably foreseeable risks. If Robinhood required a US$1bn emergency injection of equity, it is clearly not an effectively managed brokerage house.

As far as I know, Robinhood isn't trading its own book. Therefore its credit risk policies and/or internal controls and/or trade and account tracking failed because it appears that those critical parts of it business permitted its clients into trade positions which required that equity injection.

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