There are a couple of other behind the scenes entities invol
Posted on: January 29, 2021 at 12:00:14 CT
JeffB
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One is the clearinghouses.
I believe some of the brokerages are blaming their shut downs or pauses in GameStop & a few other volatile stocks on the clearinghouses who are allegedly overloaded. But it's likely also a big risk on undercapitalized brokerages who face big losses.
The SEC's net capital rules mandate the brokerages have adequate funds on deposit with the clearinghouses who make the transfers, while the cash moves from client accounts to brokerages and then to the clearinghouses. Someone claimed the SEC has a set 2 day delay between when an order is placed and when the money is finally transferred.