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is there a good explanation for robinhood shutting down buying gamestop options, shares that is not of the form "citadel/the sec told them to stop, so they did"? That seems way too simplistic and doesn't really jive with how market makers make money.
Market makers profit whenever there is order flow by skimming off fractions of pennies on the transaction (in exchange for your order getting fulfilled faster) so halting trading is actually bad for them
@taroball AFAIR they're facing a cost for enabling each trade. (with what can ptob be seen as THEIR market maker) High volatility makes market making more risky and thus increases their cost. AFAIA their argument was that due to too high vola, those positions became too costly for Robinhood to offer.