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(Quartz)   Norwegian trader causes chaos after defaulting on $117 million at Nasdaq. What an Aashat   ( qz.com) divider line
    More: Asinine, mutual default fund, Finance, clearing house, Nordic power derivatives, Aas's default, stunning default, trading power contracts, big insurance companies  
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1895 clicks; posted to Business » on 14 Sep 2018 at 5:20 PM (9 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



25 Comments     (+0 »)
 
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2018-09-14 05:07:51 PM  
Well, maybe pre 1917, when it was still common to use aa.

Nowadays, the same spelling it would be Åshat.
 
2018-09-14 05:14:06 PM  
+1 subby

I laughed my arsch off.
 
2018-09-14 05:21:47 PM  
You mean he gambled and lost.  But I thought the markets really weren't like gambling.
 
2018-09-14 05:26:48 PM  
So one single trader burned through all the reserves that were set aside to cover the largest of financial institutions in the world?

That doesn't sound like a good situation.
 
2018-09-14 05:28:46 PM  
img.fark.netView Full Size
 
2018-09-14 05:29:09 PM  
Etienne de Crecy - Tempovision (Official Video)
Youtube yQAoOf4MIYs

https://www.youtube.com/watch?v=oOorj​-​i5Tk8
 
2018-09-14 05:39:42 PM  
Is this a case that highlights the point that in order to trade in short sales you should have an infinite reserve fund?
 
2018-09-14 05:42:48 PM  
That's just lutefisk!
 
2018-09-14 05:47:52 PM  
Hey, I just bought a Aashat dresser this weekend at Ikea.
 
2018-09-14 05:59:37 PM  

Saiga410: Is this a case that highlights the point that in order to trade in short sales you should have an infinite reserve fund?


He was trading derivatives.
 
2018-09-14 06:00:24 PM  
What a shat.
 
2018-09-14 06:00:33 PM  
I wish I could gamble with hundreds of millions of dollars.
 
2018-09-14 06:01:39 PM  

HempHead: Saiga410: Is this a case that highlights the point that in order to trade in short sales you should have an infinite reserve fund?

He was trading derivatives.


78.media.tumblr.comView Full Size
 
2018-09-14 06:13:34 PM  
FTFA: "This is exactly the kind of event that the fund, and a clearing house, is designed to handle," a Nasdaq spokesman said.

One dude defaulted and almost broke through the entire system of safeguards you set up.  ONE DUDE.  Don't pretend this is good.
 
2018-09-14 06:15:07 PM  
This morning on NPR an ex-Lehman executive was complaining how unfair everyone had been to them...

FTFA:

Einar Aas was unable meet the margin requirements on Nasdaq's markets for trading power contracts this week. He was betting on German and Nordic power derivatives, a position that was hit by the "extraordinary fluctuation" in the spread between the contracts, Nasdaq said. The default forced commodities companies who are part of Nasdaq's clearing house, as well as the exchange itself, to close a €114 million ($133 million) hole in contingency funds.

Not to go all socialist, but how exactly does this job add any value for the world? Either he gets rich or he ends up screwing everyone else.
 
2018-09-14 06:25:13 PM  
TURN THOSE MACHINES BACK ON!!!

img.fark.netView Full Size
 
2018-09-14 07:01:35 PM  
A casino wouldn't let you bet $117,000 without documentation that you could back it up.
Why would a global casino be any different?
Unless, a great many of the bettors are in the same boat.
 
2018-09-14 07:19:45 PM  
Chaøs bit my sister once.
 
2018-09-14 07:57:06 PM  
It's a special kind of insanity to have 30+ million euros and think, "That's not enough, I can't retire and have fun yet."
 
2018-09-14 09:07:51 PM  

runwiz: You mean he gambled and lost.  But I thought the markets really weren't like gambling.


Depends on what you do. Derivatives are, yes. But buying VTSAX and holding it for 30 years? Not so much
 
2018-09-14 09:12:13 PM  

jgbrowning: It's a special kind of insanity to have 30+ million euros and think, "That's not enough, I can't retire and have fun yet."


He had a lot more than that - according to this story, about $263MM USD:

The former Agder Energi trader, who left the company to go private in 2005, made a mind-boggling 833 million kroner in taxable income in 2016, according to tax figures, which are public in the Scandinavian country. 

This amounted to an hourly income of 95,000 kroner, taking his personal fortune to an estimated 2.17 billion kroner.

Read more at:
//economictimes.indiatimes.com/articl​e​show/65811964.cms?utm_source=contentof​interest&utm_medium=text&utm_campaign=​cppst
 
2018-09-14 10:09:19 PM  
Somewhere a straightjacket wearing Dick Fuld is laughing maniacally while his attendants ready another shot.
 
2018-09-15 12:35:36 AM  
This seems to be the sort of mistake one shouldn't be permitted to make. There should be some sort of inherent safety that would prevent someone from making this type of mistake.

A microwave stops working if the door is opened. More systems should have fail-safes to prevent unintended operation.
 
2018-09-15 01:24:27 AM  

jgbrowning: It's a special kind of insanity to have 30+ million euros and think, "That's not enough, I can't retire and have fun yet."


That is the fun for those types.
 
2018-09-15 09:07:21 AM  

runwiz: You mean he gambled and lost.  But I thought the markets really weren't like gambling.


they are like gambling but its more poker than slot machines....traders have some information that helps them decide to buy (bet) or sell (fold). There is still a lot of guesswork involved.
 
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