Trading positions of the size that Aas had been allowed to build up can’t be liquidated without major losses, and the normal margin requirements seemed insufficient, she said.
Aas didn’t respond to voicemail messages requesting comment.
Risk Transparency
Members of the market must also describe their risk policy and the routines they follow in clearing risk management. A spokesman for Nasdaq said the exchange regularly follows up with members regarding compliance with their membership obligations. The official declined to provide details on the checks carried out in the case of Aas.
Aas got his start at Interkraft Trading in Norway about two decades ago. While it was practical for Aas to keep everything in his own name at the start, his old boss from that time, Lars Eckhardt, said he was surprised that he chose to keep that setup unchanged with all the personal liability it entailed.
“When you operate on this scale and with this liquidity risk, I’m a bit surprised he hasn’t done anything about that,” Eckhardt said. “It would have taken him a day to register the company and maybe a week to transfer contracts.”
This article was provided by Bloomberg News.