They're not allowed to use client money as collateral. They have to use their ow... | Hacker News

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		ZephyrBlu on Jan 30, 2021 \| parent \| context \| favorite \| on: Robinhood denies claims that it sold GameStop shar... They're not allowed to use client money as collateral. They have to use their own cash as collateral.

ta1234567890 on Jan 30, 2021 [–]

Got it, but what is the reasoning for that rule to be there? Why was that rule/law created?

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