70.87 Billion Reasons Why The Retail Brokers Just Betrayed Their Customers. Pay Attention: Wall Street Steals From Their "Customers" ALL The Time And Have For 100+ Years
Posted by freedomforall 4 years, 5 months ago to Business
"any number of large of large hedge funds have suffered significantly."
How much? According to financial data analytics firm Ortex, short-sellers - mostly hedge funds - are sitting on estimated losses of $70.87 billion from their short positions in U.S. companies just in 2021 alone! Add puts and other underwater derivatives, and the real loss will be even greater. And just as striking: Ortex data showed that as of Wednesday, there were loss-making short positions on more than 5,000 U.S. firms.
This means that virtually every hedge fund that had short positions on was getting hammered. So when dozens of these giant asset managers sat down and decided to polite call one broker after another what do you think happened.
That's right: Joe Sixpack was quickly sold down the river.
Why? Because the so-called "retail clients" are nothing but a cost center to the "retail brokers" thanks to the recently introduced $0 commission pay scheme. In fact, brokers would be delighted to dump all but their biggest whales clients. So who pays the fees? Well, just take a look at Robinhood's form 606: Citadel, Virtu, G1X, Wolverine, and countless hedge funds which, like Citadel, are tightly interwoven in the fabric of the market. It's they that made a few phone call and just put dozens of stocks on a market-wide restricted list.
There's more. While unconfirmed, there is speculation that that "Citadel reloaded their shorts before they told Robinhood to stop trading GME." As the source notes, if true the people behind this should be in jail.
Just got a tip that Citadel reloaded their shorts before they told Robinhood to stop trading $GME.
If this is true, Ken Griffin and the Robinhood founders should be in jail.
This is class warfare.
— Justin Kan (@justinkan) January 28, 2021
How much? According to financial data analytics firm Ortex, short-sellers - mostly hedge funds - are sitting on estimated losses of $70.87 billion from their short positions in U.S. companies just in 2021 alone! Add puts and other underwater derivatives, and the real loss will be even greater. And just as striking: Ortex data showed that as of Wednesday, there were loss-making short positions on more than 5,000 U.S. firms.
This means that virtually every hedge fund that had short positions on was getting hammered. So when dozens of these giant asset managers sat down and decided to polite call one broker after another what do you think happened.
That's right: Joe Sixpack was quickly sold down the river.
Why? Because the so-called "retail clients" are nothing but a cost center to the "retail brokers" thanks to the recently introduced $0 commission pay scheme. In fact, brokers would be delighted to dump all but their biggest whales clients. So who pays the fees? Well, just take a look at Robinhood's form 606: Citadel, Virtu, G1X, Wolverine, and countless hedge funds which, like Citadel, are tightly interwoven in the fabric of the market. It's they that made a few phone call and just put dozens of stocks on a market-wide restricted list.
There's more. While unconfirmed, there is speculation that that "Citadel reloaded their shorts before they told Robinhood to stop trading GME." As the source notes, if true the people behind this should be in jail.
Just got a tip that Citadel reloaded their shorts before they told Robinhood to stop trading $GME.
If this is true, Ken Griffin and the Robinhood founders should be in jail.
This is class warfare.
— Justin Kan (@justinkan) January 28, 2021
