Robinhood CEO: limited buying of GameStop to 'protect' people, company

Robinhood CEO Vlad Tenev says limited trading of GameStop and AMC shares will 'protect the firm and protect our customers'.

@anthony256
Published Thu, Jan 28 2021 10:03 PM CST   |   Updated Thu, Mar 4 2021 9:50 PM CST

Robinhood CEO Vlad Tenev is probably one of the most talked about people in the world right now, with the Robinhood CEO talking with CNBC on Thursday night about all-things Robinhood.

The company restricted trading of stocks like GameStop and AMC Entertainment, with Robinhood only allowing sell positions and not letting people open new ones. Robinhood CEO Vlad Tenev explained to CNBC: "In order to protect the firm and protect our customers we had to limit buying in these stocks".

Tenev added: "Robinhood is a brokerage firm, we have lots of financial requirements. We have SEC net capital requirements and clearing house deposits. So that's money that we have to deposit at various clearing houses. Some of these requirements fluctuate quite a bit based on volatility in the market and they can be substantial in the current environment where there's a lot of volatility and a lot of concentrated activity in these names that have been going viral on social media".

Judging by how pissed off people are, I don't think this is the type of response they were looking for.

I think this tweet from Daniel Schwartzkopff, Founder @ Invictus Capital who said: "How is shutting down one side of an orderbook not market manipulation?"

And actually, the reply to Schwartzkopff's tweet was from Lindsey Yeauger who added "That interview was so painful. So many questions went unanswered. 1. Why are we just now hearing from him? 2. Since there was a clear liquidity issue, why not say, "For the near future these few stocks will have fees."? 3. When is the board replacing him?"

Robinhood CEO: limited buying of GameStop to 'protect' people, company 03 | TweakTown.com
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Anthony joined the TweakTown team in 2010 and has since reviewed 100s of graphics cards. Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering.

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