'Rogue trader' hits oil broker
The alleged rogue trader who cost his company £6 million and pushed oil prices to an eight-month high is under investigation.
Exchange ICE Futures Europe - where bets on the price of oil can be placed months ahead using futures contracts - is probing the flurry of trading in the early hours of Tuesday morning.
Oil broker PVM Oil Associates was forced to unwind the series of unauthorised trades - widely reported to have been made by its senior broker Steve Perkins.
The trades pushed the price of Brent crude futures up by more than two dollars to its highest level this year above 73 dollars a barrel.
ICE Futures Europe's president and chief operating officer David Peniket refused to comment on individual cases, but said the body would investigate unusual trading activity as a "matter of course".
"There are a range of procedures that are followed to look at trading patterns, price movement and levels of activity.
"We have a market supervision system and a compliance system and we are constantly carrying out the kind of process that we have discussed.
"It will investigate and follow up, and where appropriate, action will be taken," he said.
London-based PVM Oil Futures issued a statement after rumours spread about irregular trading on City and Asian markets.
In a statement issued by managing director Robin Bieber, the firm said it was investigating the unauthorised trades but did not name any employee suspected of being involved.
- Post:
- del.icio.us
- Digg
- Netscape
- Newsvine
- Now Public
- Q&A
{ JOIN the CONVERSATION }
WRITE A COMMENT
Guidelines At A Glance
Below are some quick guidelines to note when posting comments on AOL.