Three years ago, around about this time, a bunch of Brokers colluded to take away the buy button on a few particular stocks, but they left the sell button, creating a unilateral perception of controlled markets all for worries about their balance sheets and systemic risks.
Free markets are an ideal, they’re dead Jim.
Mainly, they were worried about their balance sheets.
Outside of the motives and underpinnings, the events described above are facts.
And as it appears, the DTCC, the umbrella of Clearing Housing Consortium that Brokers go through, imposed unscrupulous and unreasonable demands for reserves to offset their systemic calculated risks.
(Think of it like this Retail Traders > Retail Brokers > Clearing houses > DTC/NSCC >DTCC)
Primary Source:
‘U.S. House Committee on Financial Services Report On ‘MemeStocks’
Released Friday June 24, 2022 (138 pages)
The DTCC imposing higher margins, resulted in Clearinghouses imposes higher margins, resulted in Brokers getting the idea to remove the buy button to limit the deposits required for holding ‘volatile’ ‘risky’ stocks.
All the while mainstream media parrots manipulative ad campaigns to curtail the retail trading frenzy.
The Subsequent fall out
For the removal of the buy button and not the sell button angered people from the joe shmoes to high echelons of ethical sounding business people. And boy are many people pissed.
Resulting in a very highly scrutinized review of specific companies and their dealings with that of the financial guard of Wall Street. Resulting in the uncovering of systemic plumbing and risks associated, revealing a lot and shining a light on financial retardation from shadow equity institutions.
This is an ongoing affair, and more people are still actively eyeing the for coming results of such a trade affair.
In Closing,
GameStop was a thing three years ago.
It’s still currently a thing,
-and people are buying stock outside of their street names and taking real ownership of their stock through a Direct Registration System, Directly Registering their share certificates under their real names and not their beneficial ones.
Know this:
They took the buy button
Only time will tell if and when this amounts to something.
See you in space, cowboy.
*Not Valid Financial, Legal, Life, or Any Advice