Vlad from Robinhood about to jump into this Clubhouse room w/ Elon to discuss what happened to them

1/

Thanking the people who supported him, first time on Clubhouse, got introduced to Elon

2/ Thinking life is a simulation

Elon - why cant people buy Gamestop?

Tells the story, introducing Broker dealer - Robinhood financial, the app you know

Clearing broker dealer - robinhood securities

Crypto biz. Different subs

3/ Wed of last week, unprecedented stress and volume, ton of people joining, lot of net buy on meme stocks

#1 app on app store

Thursday morning - 330am pst, ops team got file from NSCC - capital for clearing broker based on volume, volatility, etc. Deposit amount was $3bil

4/ Order of magnitude way bigger than expected

Robinhood had raised 2b of VC up until then

Formula - dont have full details, but VAR based on quantitative (non-transparent?) calcs + discretionary (acts as multiplier)

5/ Dont impute any shadiness, NSCC has been reasonable and worked with them

Nobody is holding them hostage currently

Nerve wracking, COO and he called senior folks at NSCC

Lowered the capital ask from 3b to 1.4b

6/ Put out plan to manage risk in specific securities... position closing only

NSCC lowered again to 700 mil after plan to manage risk

Knew it was bad outcome for customers

RH stands for democratizing, has been a challenge

7/ Had no choice, had to live by regulatory standards, trying to do the best thing for their customers

Can't really explain who controls and manages NSCC

Unprecedented activity in meme stocks, unprecedented times

Customers could sell open positions

8/ Limiting selling worse than limiting selling

Other brokers restricted same activity

Elon - so they had a gun to your head, hand over the money, did you sell clients down river or have no choice?

9/ We have to comply with requirements

Will relax stringent position limits tomorrow morning on most securities

Elon - If you had no choice, you had no choice? But who made those decisions, they should be telling us why

We are part of finl system, NSCC has been ok

10/ Some of this is just a necessity of trading equities

Citadel are you beholden?

No pressure from them, market makers just execute our trades

This was a clearing house, capital requirement decision

Market makers werent involved

11/ No reason to believe any of the conspiracy theories

Moderators sound exasperated

......end