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by jimminy 1950 days ago
> “The bottom line is that clients are still able to trade in GME, but we’ve put some restrictions on certain types of transactions in the interest of helping mitigate risk for our clients,” Schwab said Wednesday in a statement.[0]

They very much did 3 weeks ago. Not to the same degree as the smaller brokerages, but they still put limitations on margin trading, and restrictions on options.

[0] https://www.thinkadvisor.com/2021/01/29/gamestop-lawsuits-hi...
3 comments
nemothekid 1950 days ago
Schwab’s restrictions came down to:

1. Increased margin requirements for GME 2. Restrictions on naked strategies

Both of these are pretty much acceptable on a very volatile stock. They never prevented you from buying the stock or options. I think including Schwab or TD in this is near misinformation because 99% of users wouldn’t make use of the features that Schwab ended up restricting

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3001 1950 days ago
Right, can’t short sale and 100% margin requirements. How is that newsworthy or anything to Wimp about.
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onedognight 1950 days ago
RH kept you from buying GME; Schwab did not. This is a huge difference.
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perl4ever 1949 days ago
I think people may be mislead because they are looking back at the published restrictions, but those don't reflect immediately prior, when things were going nuts and brokers, not just Robinhood, were doing stuff without notifying customers.

TDA is a subsidiary of Schwab and was blocking some purchases for some period of time during the week, before they put out a statement that said they "will not prevent clients from making basic buy and sell transactions".

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seafoam 1950 days ago
The string "put" does not occur in the article referenced.

Existing restrictions became sizable due to the market volatility. This impacted certain clients of the brokerage that had significant exposure to the names relative to their account.

Not the same thing as the brokerage implementing new restrictions.

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derangedHorse 1950 days ago
I think he just posted the wrong link, but there is an article on thinkadvisor with the referenced quote: https://www.thinkadvisor.com/2021/01/28/schwab-td-ameritrade...
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