dtcc and robinhood. so i -- i do not understand the premise of the question because we have literally nothing to do with dtcc other than being a member of dtcc for providing settlement services for us and for doing realtime trade affirmation and clearing now, citadel securities owes a duty of best execution for every order that comes from robinhood. and i will tell you that i am incredibly proud of how seriously my team takes that duty of best execution some of the most earnest, hard-working and thoughtful people that i have ever met in my life work on our retail execution business here at citadel and take great pride in the execution quality that we give to each and every trader, not only at robinhood, but at every single one of the retail -- >> thank you thank you for your response, mr. gill but i understand that you made your decision known on game stop as far back as 2019 and are lotted as a diamond hands hero by wall street bets community. have you ever previously experienced or observed the type of

dtcc moved faster when it moves to trading settlements.is t-plus two, adjusted from t-plus 3 in 2017. when i got in it was t-plus five. because you need time for brokers to come in to pay for orders. this reduces cost savingses, market risk and lower margin requirements. it would mack it harder to short 140% of stock. the dtcc move could take two years, that there would be a positive development to browbeat these stocks a major step in the right direction. the joy exhibited by individual investors underscores they are in tune with developments. with tweets of ice cream cones. while it is not a changing of the guard. the message to the establishment that they have company. the individual investor yelling turn those machines back on. two market proses always yelling turn the machines back on. keith fitz-gerald, courtney dominguez, payne capital management a group i'm not familiar with. keith, you are one of the few investment pros taken the individual investor the whole reddit investment thing seriously so what do you make of the latest roun

in your view, a, were the collateral requirements from the dtcc unreasonably high, was the amount of trading on your platform unforeseeable, or was your company under capitalized given its risk profile >> thank you for the question, congresswoman. so this event was a phi sigma event which is 1 in 3.5 million event. to put that in context there have only been tens of thousands of stock market days in the history of the u.s. stock market so 1 in 335 million event basically is unmodelable that said, we can learn from it and in this particular case our risk managing processes worked to keep us in compliance with all of our deposit requirements and collateral requirements. >> mr. tenev, i realize you are doing a full review of your practices and such i encourage you to do that and certainly communication with your investors is going to be key to that because you didn't communicate with them early on let me say as a ranking member on the diversity and inclusion subcommittee i am delighted to be speaking with our witness missjennifer schulp. ranking member mchenry and i have spent hours str

>>>> we do not own -- >> do not own dtcc. we are not party to the discussion dialogue or demands between dtcc and robinhood. i do not understand the premise of the question, because we have literally nothing to do with dtcc, other than being a member of dtcc for providing settlement services for us, and for doing real-time trade affirmation and clearing. citadel securities owes a duty of best execution for every order that comes from robinhood. and i will tell you, i am incredibly proud of how seriously my team takes that duty of best execution. some of the most earnest, hard-working, and thoughtful people i have ever met in my life work on retail execution business here at said adele -- here at said adele and take great pride in the execution quality that -- here at citadel, and we take great pride in the execution quality at every single one of the retail -- >> thank you for your response, mr. gill. have you ever previously experienced or observed the type of restrictions robin hood and other applications performed on janua

>>>> we do not own -- >> do not own dtcc. we are not party to the discussion dialogue or demands between dtcc and robinhood. i do not understand the premise of the question, because we have literally nothing to do with dtcc, other than being a member of dtcc for providing settlement services for us, and for doing real-time trade affirmation and clearing. citadel securities owes a duty of best execution for every order that comes from robinhood. and i will tell you, i am incredibly proud of how seriously my team takes that duty of best execution. some of the most earnest, hard-working, and thoughtful people i have ever met in my life work on retail execution business here at said adele -- here at said adele and take great pride in the execution quality that -- here at citadel, and we take great pride in the execution quality at every single one of the retail -- >> thank you for your response, mr. gill. have you ever previously experienced or observed the type of restrictions robin hood and other applications performed on janua

when the influx of trading came in dtcc, which, which must clear all trades in the markets came out andu more to handle these trades, about 3 or 4 times as much. that is where the capital level came into play. so what they did was, that is when they were essentially forced, before raised capital, they were forced to stop the selling, excuse me, the buying of these shares. you can still sell them. you just can't buy them. that is exactly what happened. that is why they waited to thursday or friday, i can't remember when they raised a billion dollars, i think it was friday to raise the money. because their up charge from dtcc came later in the week and that's what forced them, a, to stop trading those stocks or at least trading one side of it. you can still sell, you couldn't buy. that forced them to raise money. they have raised more money to try to tell the market that it has investors. they're planning for a bumpy road ahead. this is very serious situation for robinhood. it is a great business model. it has huge growing pains we're seeing it right now. jackie: yeah. >> from what i'm he

are you expecting robinhood like news this afternoon, dtcc kind of news?all this talk out of washington that they were going to have to do something. exactly what they would do and who it would to be seen, but if you are on any of the streaming platforms, you saw a lot of lawmakers trying to break it down and pick out the next bogeyman. they are pointing the finger at citadel and a few other hedge firms. one of these companies is going to take the blame for it. tom: thank you so much. a little bit south right now, futures advance up 37. a nice morning all in all for the equity market. gene tannuzzo with columbia threadneedle to one's is now, global head of fixed income. we are so distracted by the equity market. i need to get back to fixed income 101. are you clipping coupons. , or are you defensive? gene: this is definitely a coupon clipping environment, tom. i think you said it right. we are not playing for price appreciation at this point in time in fixed income. we are looking at elevated prices across the spectrum in fixed income, and for us, it is ab

was it an order that came down from the dtcc or did any other industry actors exert pressure over thatart of the matter >> now, david, it's interesting that we saw the ceo of reddit's prepared testimony that he said there were no evidence of bots, no foreign actors, no bad actors involved in wall street bets indicating there was no manipulation everything that hammed on wall street bets was within the normal parameters of what happened on reddit how important is that to your understanding of what happened and to what we learned today >> well, first of all, why is steve huffman being dragged in front of congress to say that there is no foreign actors because wall street bets was be street bets were part of this disinformation, whatever that means. basically what happened is that opponents of wall street bets tried to weaponize the speech rules of these sites like reddit and discord in order to take down the buy side of the trade we need to know what happened there. who exerted pressure on reddit and discord to take down wall street bets? in my view it is market manipulation to try and a

and so we reported on thursday morning the dtcc, the central clearinghouse that settles and finalizes all of these trades, increased margin for the market on gamestop and related kind of names, related recent high-fliers from $26 billion to close to $34 billion we understand robinhood was not the majority of that, but a significant chunk of that. that was because of the very issue we talked about. but it also seems to have put them into this very quick emergency capital raising that you and i wrote about as well as having to draw on their bank line of credit >> rich, you look at what's going to take place over this week it does feel like this is a movement of sorts. we're watching it now take place with silver. how do you think about it in terms of a brokerage like robinhood, meaning is robinhood going to stay as an independent company, can they make it if we have these sort of flash mobs doing this, and what does it say about the model? >> it certainly, as kate and others have pointed out, it's stressed robinhood's model but i think one thing people may not realize, but the risk of a

by the way i can't wait for the scintillating conversation on the dtcc clearing and settlement process. when that comes i will be tuning in. let me tell you something. because that is part of this whole thing. how do stocks settle and how much capital you have to put up when stocks settle. i disagree with the prior guests. maxine waters has a real shot looking incredibly stupid here if she goes for the entire full monty of the, of the scandal. this is the little guy because it is so obviously, it is obviously contradicted by the obvious facts. what you brought up, neil is salient, they won't get into, it is congress, when you have 0% interest rates, free checks to people over covid relief, people with at that time love time on their hands, throw the noxious brew together with 0% interest rates, people will gamble, look at investing as gamble. you can't make money in bank account, you buy a bond. you can't make any money in a bond you buy a junk bond. that goes on no stocks. apple is not good enough. roll the dice with gamestop. we have a lot of time on our hands to scour mess page boar

happens next >> i think that there is actually, i think, i actually expect that the depository, the dtcce have to do a t-1 which is something that vlad wants and that would have caused a much better situation i know that cnbc's data, which i did look at this reference by vlad today, about how the individuals were sellers is compiled and true, but i like to think that this is the peak, the high water mark of bad, because they brought in a lot of compliance people at robinhood, they're really trying to do this right, and the fact is, that because he went on dave's show, that was a sign that, look, i got to take my beating, i expect that, i understand it, but i'm going to do better and i really liked it i thought it was very good >> something i'm looking forward to today is an interview you all have coming up next, the new ceo at marriott. >> yes. >> tony wapliano and interest, capliano and what he had to say and a terrible situation to be subbing into because of arnie's passing but a pretty well-known character and who has been around for a long timeand what are you hoping to hear out of i

the sec certainly has a fair and orderly markets mission but the more interesting thing is that the dtcc i've been through this i've managed clearinghouses, clearing brokers, merchant def defaults they're a messy business in some ways this was an escape over the last week in that we didn't have a clearing broker default. when you have a clearing broker default all of a sudden you're liquidating millions of accounts i think that's going to be the lasting story. it's that and what you described, joe the perception of the stock market it's interesting because you have a guy coming in to run the sec, barry gensler, probably the most knowledgeable sec chair in history when it comes to clearinghouses i expect he's going to gravitate. walk me through why you called for 3 billion, they didn't have it, they put up a smaller number it's not just robinhood. a lot of people were getting calls. something broke down in the risk model of the risk brokers. i can tell you having worked with or more gary gensler, there's going to be a whole bunch of insightful, indepth questions about that. >> hey, tom, w