| | Another strange story of unauthorized trading for a large commercial institution, this time from London. PVM Oil Associates announced that price spike, which pushed price of oil to the highest level this year on Tuesday, was caused by extremely large trade by one of their brokers. Details are a little sketchy, but it appears that 8000-9000 contracts were bought in a single trade, an exceptional size. Price responded by jumping as high as $73.50 per barrel, before falling hard.
PVM disclosed a loss of about $10 Million, small amount as measured by standards of other recent unauthorized trading, rip off's, scams and swindles. An unnamed firm employee was branded "rogue", but no more details were released. So, the whole thing could have been incidental, not intentional. Nobody talks about prosecution, at least not yet, so why even bother with bringing it up? Possibly much bigger losses hide behind and will be disclosed a little later. This is only to soften the public before real news hit the wires.
It has been relatively slow day in Forex trading, rather typical around the 4th of July. No active trading for me, but I reviewed the few remaining long term trades, including the much talked about GBP-CHF trade. Half of it was closed last week, today I exited the balance of the position.
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Another rogue trader. |
| | Posted 7/3/2009 1:07 PM - 39 Views - 2 eProps - 1 Comment
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