It's just been proven that citadel forced robin hood to turn off the buy button and apex clearing did the exact same thing to weeble and many other brokers. Today, i want to digest this new gamestop report and talk about how. Interestingly, there is light at the end of the tunnel, so stay tuned and let's make some money. I now want to dive straight in with the key information, so maxine waters, tweeted saying immediately after the trading frenzy of gamestop and other meme stocks.

I said the house committee on financial services will get to the facts that led to the market volatility she said promise kept. Today we released our report on our full response and investigation that i led. I urge you to read it so i've gone through this report. Digested the whole thing and pulled out some of the most key areas that i thought were of utmost importance that i want to discuss today.

The first is key finding number four in her report she said the dtcc waived: 9.7 billion dollars of collateral deposit requirements on january 28, 2021 aka, with 9.7 billion dollars worth of margin calls. She said the dtcc lacks detailed, written policies and procedures for waiver or modification of a disincentive charge. It calculates for brokers that are deemed to be under capitalized and has regularly waived such charges during periods of acute volatility in the two years before the meme stock market event. So not only did the dtcc waive 9.7 billion dollars worth of margin calls actually they've done.

The exact same thing on numerous occasions beforehand, therefore, in a reality, it's very unlikely that robin hood would have been margin, called defaulted or gone bankrupt on january 28th and in all fact, their previous head of compliance even said if they failed to post the collateral. The first offense that they receive would only be a fine. Therefore, in reality, robin hood actually had very little pressure to actually post this collateral or to meet their margin. Call because the dtcc has such a history of waiving large margin calls and, interestingly enough, many employees at robin hood were actually massively against the pc owing of stocks, not only that they knew that robin hood would be crucified.

They believed it could actually trigger an entire market crash. The head of data science said us: pceoing stocks will trigger a market crash. I am certain and their product manager said it's a bad look we're supposed to support the retail traders. Therefore, in all reality, robin hood knew they wouldn't fail.

This margin call they knew they wouldn't be margin called and wouldn't end up defaulting and actually many many employees even top level. Employees were against the pcoing of stocks, but the reason why the pco was enacted and the reason why we know citadel forced robinhood to do it starts to be unravelled later on in the report it says, on january 28, 2021. Robin hood was not connected to the new york stock exchange, nasdaq or any other public exchange where it could have rooted customer trades for execution. Instead, robin hood was solely reliant on its market maker firms to execute trades, most of whom were struggling under significant operational stress in the face of historic volume and volatility.

Had the market makers, robin hood routinely routed orders to being unable to accept its order flow. The company would have been unable to execute trades for its customers now. If robin hood was accepting both buy and sell trades, but was unable to execute those trades, it would have instantly crushed the reputation of robin hood and they would have gone bankrupt overnight. Therefore, because robin hood wasn't connected to the new york stock exchange, the nasdaq or any other public exchange, they were completely at the mercy of their market-making firms.

They may say tom, who are those market-making firms and who executed the majority of trades for robin hood and therefore, who are they at the mercy of the most and guys? If you want a broker that doesn't sell their order flow to citadel and also doesn't root their trade through apex, clearing, look no further than mumu incorporated moomoo root their trades on their own, as they have their own clearing platform photo incorporated that doesn't sell to citadel And also doesn't charge or receive payment for order flow and right now, if you sign up to moomoos in the link in the description below, you can currently get 10 free stocks worth up to 25 000 in total and a guaranteed free share of lucid. On top of that now i'm sure you can take a guess, but as this paragraph reads, gretchen howard, robin hood's, chief operating officer, who described her role to committee staff as being like a trained conductor across the entire company. She alleged to those committee staff that the morning of january 28th was a bit of a blur. She couldn't recall with any specificity, any updates she received on various market makers, the company interacted with during the meme stock market event.

Of course, how coincidental that she can't recall any conversations with any specific market makers how unfortunate, but it says, on january 28th, robin hood routed orders to six market makers for equities citadel securities, g1 execution services, morgan stanley, two sigma securities virtue and wolverine. Many of those names of which i'm sure you've heard before, but, interestingly enough, as it says, many of those market makers were actually struggling on january 28th due to the massive inflow of volume. Many of these market makers actually, coincidentally, requested that robin hood stop rooting order flow to them and instead wrote to their other market makers. Now it says virtue's request to root trades away from virtue was far from the only operational concern presented to robinhood securities during the meme stock market event.

It says many of their six venues requested robin hood to root orders away on january 27th and january 28th. At certain points, market makers requesting robin hood wrote away all orders so on january 27th they stopped rooting orders to two sigma securities and to virtue, and also stopped temporarily routing orders to morgan stanley as well on january 28th. They then added to that list and stopped routing orders to wolverine and also reduced their order flow to g1 execution services as well, and also then temporarily stopped equity orders to two sigma securities and virtue again now, if you're keeping up that basically means that citadel was The only market maker possible that robin hood could have routed their trades to on january 27th and january 28th. How coincidental now we know that around 9.8 billion dollars worth of margin calls were waived on that day.

There's actually a comparison for a number of institutions that received margin calls on that day and how much was actually waived. So there was about an 80 waiver given to virtue about an 85 waiver given to axos around an 82 waiver given to itg. But, coincidentally, a 99.1 waiver, obviously to robin hoods. Clearly somebody had some very very special connections at the dtcc for robin hood to receive a 99.1 waiver.

But the report even states that many employees at robin hood had had zero previous connections with the dtcc other than their previous head of compliance. Who actually didn't really know how the dtcc's calculations even worked. And this is where i believe that citadel not only forced their way into robin hood, but also forced their way with the dtcc as well. I personally believe the citadel convinced the dtcc to massively reduce robin hood's margin, collateral requirements and, at the same time, forced robinhood to pco these stocks and threatened otherwise to not rule their orders.

This way, robin hood escapes fairly unscathed. They don't get a black mark on their record for failing this margin, call requirement, they don't get a fine and they still get to keep all of the order flow being rooted. All they have to do is pco some stocks. Now many employees at robin hood didn't want to pco these stocks because they knew it'd be terrible for robin hood and could potentially crash the entire market.

But clearly robin hood were obviously forced into it and therefore got to continue routing their orders and weibo. And many other brokers that clear through apex clearing, also suffered the exact same fate. It says, on january 28th, we will received an emergency notice via email from apex espressly, instructing it that gamestop amc and costs be placed into liquidation, only statuses on their trading systems, i.e. A pco restriction now this didn't just happen to weeble, because apex provides the exact same clearing services and sent the exact same email to other introducing brokers, including ally, invest betterment securities, m1 finance markets by goldman sachs sofi, stash tastyworks, trade, zero and hundreds more and as Freycoin tweeted it as proof that apex clearing could not meet an intraday margin call, so instead they decided to stop retail from buying amc, removing all buying pressure from the market on the day they took the button away.

The reason why this massively impacted the amc and gamestop squeezes is because, as dbx says, in other words, they turned off margin calls not only these trading platforms turn off the buy button, but because the dtcc turned off margin, calls and waived. All of these margin calls these companies and these trading platforms, weren't forced to buy tons and tons of amc shares. He said no margin calls equals no liquidations and that equals no buying massive amounts of shares of gamestop on amc and no forcing the closing of short positions, which therefore equals no mother of all short squeezes. He said the dtcc effectively turned off the mother of all short squeezes.

By not margin calling these firms. He said they turned off margin calls which is more significant than turning off the buy button. He said, however, the two actions in tandem, removing margin calls and the buy button effectively prevented the mother of all short squeezes. But when asked about the meme stock market event in early 2021 apex clearing ceo said, and so if the question is, do i think it's going to happen again? The answer is yes for sure.

No doubt about it, how it's going to manifest itself, i'm not sure, but for sure it's going to happen again. He said because they've lowered the barriers to entry, millions more people can invest that never had the chance to before, and he believes it's only going to continue and frankly accelerate next time around when amc and gamestop do run up this time, we've got millions more retail Investors that will be buying the shares during the run up and during the squeeze, and that is why the apex ceo believes for sure it is going to happen again. This report also shows that many of these trading platforms actually haven't changed and don't plan to change the way they calculate their margin requirements and therefore, it's very likely that these trading platforms will be margin called once again in the future and bingham's tweet is saying so Guess what we have been right, the whole time, but wrong about just how many are in on it. He said i told you since the start, the dtcc and the banks are the head of the snake.

He said cut that off and the body dies. I think it's very clear to see the dtcc are absolutely complicit in this as well. Waiving those nine nearly 10 billion dollars worth of margin calls, if that nearly 10 billion dollars worth of margin, calls wasn't waived. It would have absolutely caused the squeeze as billions and billions of amc in gamestop shares would have been brought back but guys be sure to.

Let me know what you think down in the comments below and, as always guys be sure to ding that notification bell, because that way, you'll be alerted when i'll put a new video cheers.