Rogue Trades Cost Oil Broker $10M

Discussion in 'Wall St. News' started by patchie, Jul 2, 2009.

  1. patchie

    patchie

    Rogue trades cost oil broker $10m
    Traders work on the floor of the New York Mercantile Exchange
    Oil is the world's most heavily traded commodity

    A rogue trader at a London oil broker caused his employer to lose $10m (£6m) after making unauthorised trades.

    PVM Oil Futures said it was a "victim of unauthorised trading on Tuesday June 30" and said it was conducting a full investigation.

    PVM said it had informed the Financial Services Authority and the InterContinental Exchange, which is where much European trade takes place.

    The trades are thought to have caused a jump in oil prices on Tuesday.

    London Brent crude rose as high as $73.50 a barrel on Tuesday before reversing sharply in volatile trade. Brent crude oil settled at $66.65 a barrel on Thursday.

    'Loss suffered'

    PVM said it was now conducting business as normal.

    "As a result of a series of unauthorised trades, substantial volumes of futures contracts were held by PVM. When this was discovered, the positions were closed in an orderly fashion. PVM suffered a loss totalling a little under $10m," the company said in a statement.

    Oil is the world's most heavily traded commodity, with trading centred on the ICE in London and the New York Mercantile Exchange or Nymex.

    Brokerages like PVM place orders on behalf of large banks and hedge funds.
     
  2. oops




    <a href="http://media.photobucket.com/image/steve urkel did i do that/shg_graphics/funny/SHG_SteveUrkel.gif?o=1" target="_blank"><img src="http://i499.photobucket.com/albums/rr359/shg_graphics/funny/SHG_SteveUrkel.gif" border="0"></a>
     
  3. I bet he was thinking that if he made a lot of money for the company he'll get a big fat bonus.