[JumpCrisscross]

> if customers are buying with cash, it seems pretty suspect for the bank to claim that is increasing the bank's risk exposure

Cash trades still expose brokers to volatility due to settlement.

This policy is likely one part regulatory theatre and one part customer selection. Customers buying MicroStrategy stock are unlikely to be lucrative customers for the banking products HSBC hocks.

[kasey_junk]

Yeah if they were worried about settlement risk they could just not release funds/shares until they settle. But that’s probably harder to implement than a blanket ban and they have nothing to gain by catering to the meme shares crowd.

[JumpCrisscross]

> if they were worried about settlement risk they could just not release funds/shares until they settle

This doesn’t solve the problem of clearing collateral. That said, HSBC is a money centre bank. It isn’t worried about clearing collateral.

The policy is almost certainly a filter. If you’re trading MicroStrategy, you’re probably not a fit for their banking and wealth management services.

[kasey_junk]

Not to get too far in the weeds (as I agree with your point) but why wouldn’t holding the funds/shares until settlement cover the clearing? Especially given they control the order routing and risk systems involved?