Wednesday, June 30, 2010

Strange oil trading story

This story is really strange and bizarre. Here's the underlying FSA story, and all the details.

What the documents don't really describe is how the FSA got involved.

Why was only Perkins sanctioned? Did not PVM themselves bear some of the responsibility?

And what sort of financial system has the world built for itself, when:

Perkins' employer, PVM Oil Futures Ltd, did no proprietary trading, but in the early hours of the morning on Tuesday 30 June 2009, Perkins traded on ICE without any client authorisation. He traded in extremely high volume in the ICE August 2009 Brent contract and in doing so accumulated a long outright position in Brent in excess of 7,000 lots (representing over 7 million barrels of oil).

All I can think, is: Yikers!

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