Niederhoffer investors receive check in the mail

Discussion in 'Trading' started by Diode, Mar 15, 2004.

  1. Diode


    From: Infovest21 News Provider
    Sent: Thursday, February 26, 2004 5:48:32 PM
    Subject: Niederhoffer investors receive check in the mail

    A former investor in Niederhoffer Investments pleasantly reported that he had just received a check from Victor Niederhoffer. Niederhoffer passed through the settlement he made with the Chicago Mercantile Exchange to investors.

    On October 27, 1997, Niederhoffer, who had been trading S&P 500 options, received a $50 million margin call when the Dow Jones Industrial Average fell 554 points. He was forced to liquidate after the market plummet.

    Niederhoffer said he had a disagreement with the Chicago Mercantile Exchange on the settlement of prices on October 27, 1997. He pursued and reached an amicable settlement with the exchange. He gave the money to the investors. Niederhoffer said it had been a few million dollars.

    The initial suit had been filed by Niederhoffer, Niederhoffer Investments and several commodity pools controlled by Niederhoffer in May 1999. The exchange was accused of failing to enforce rules establishing settlement prices on specific dates, leading to Niederhoffer, the pools and their futures commission merchants to suffer at least $105 million in damages.

    source: Daily Speculations (Niederhoffer's own site)