‘Sheriff’ tussles with Robinhood

According to NSCC’s rule book, a broker’s excess net capital premium charge starts building when a substantial amount of its deposit requirements is higher than its total net capital. On January 28, Robinhood’s total VAR deposit was around $1.4 billion – far higher than its net capital of roughly $486 million. Robinhood’s VAR requirement had already hit $690 million on the evening of January 27, likely exceeding its net capital, before NSCC slapped it with an additional $700 million VAR charge on January 28.

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