Rogue trader costs boss ten million

France News.Net
Sunday 5th July, 2009

In London, a rogue trader has cost his employer US$10 million.

PVM Oil Futures has reported the trader was suspended after he made unauthorised trades, raising substantial volumes of futures contracts.

PVM discovered the loss after picking up anomalies in the price of Brent crude oil.

On Tuesday last week, the price of Brent crude rose about $2 a barrel in the space of an hour, hitting $73.50 a barrel before reversing sharply in volatile trade.

In that time, contracts for 16 million barrels of oil changed hands, which is 32 times the normal level.

The company immediately informed the Financial Services Authority and the InterContinental Exchange, which controls much of the European oil trade.

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