Doubtful. That'd massively upend the customer relationship. Can you imagine getting locked out of your phone over an unpaid $20 bill?
41 karma · joined July 16, 2019
Incident began at 2021-11-16 10:10 (all times are US/Pacific).
https://status.cloud.google.com/incidents/6PM5mNd43NbMqjCZ5R...
https://www.twobirds.com/~/media/pdfs/expertise/employment/e...
But how does it follow that regulations should restrict a pension's choices?
The interests of the prime broker and hedge fund investors are often not aligned. e.g. Archegos - Goldman dumped the Viacom shares to save the bank from losses at the expense of Archegos.
Responsibility for a pension fund's risk sits with the pension fund.
Now if you're proposing that limiting a hedge fund's access to leverage by preventing banks from extending such leverage would overall de-risk the system thus providing a safer playing field for pension funds... possible, but you're attempting to derive causation in a complex system which begs the question of what unpredictable derivative effects come along with the change, the magnitude of those effects, and their net effect on safety.
"Most of the money these hedge funds manage comes from pension funds, endowments, and similar organizations that are trying to grow their investments today to pay out the needs of retirees and students tomorrow. We do not know how to create a system that allows fund managers to design novel investment strategies that are risk-free. If we want to continue to encourage fund managers to invent strategies that potentially generate large returns for their investors, we have to accept that blows-ups are part of that invention process."
I mixed up my frozen trading stories here. It was March 2020 where we saw fully frozen trades due to internal Robinhood infrastructure failures, unrelated to DTCC infrastructure and margin.
It did catch up with them, but the headline marketing remains unchanged. https://www.sec.gov/news/press-release/2020-321