Friday, July 3, 2009
The mysterious oil trade was perpetrated in London - at 3:00am by one of PVM's brokers. This could be a case of TWI (Trading While Intoxicated), although this time it is BWI - Broking While Intoxicated. The oil business is not know to be teetotal. It could also be something more nefarious than a ticked off broker. Perhaps someone else benefited from the trades. It will all come out in the wash. Meanwhile The Wold Report is doing some investigating as to how this could happen. Was there no risk firewall on PVM's front end trading system? A reliable source tells me that there is no limit to how much a broker can enter into the ICE or Nymex systems on behalf of its clients. That the trades do not go through any kind of limit or P&L system on their way to the exchanges. I am shocked. More soon. Happy 4th of July!