Norwegian Energy Trader Einar Aas said he suffered huge personal losses and likely bankruptcy.
"Nasdaq said the size of his positions blew through several layers of safeguards designed to protect the clearing house from hefty losses. Mr Aas was clearing his own trades, rather than going through a broker. Aside from having lost his initial margin on the trades, he will also lose the €36m he provided as additional margin as the trade soured.
That prompted Nasdaq to cut the entire trade on Wednesday and the exchange confirmed that the loss accounted for all of the exchange’s own default fund of €7m and swallowed €107m, or two-thirds, of its €166m mutual default fund that clearing house members must contribute to."
Trader blows €100m hole in Nasdaq’s Nordic power market: Loss raises questions over clearing-house controls on eve of Lehman anniversary
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