Alphabay has liquidated its derivatives positions tuesday. The total positions were cut in three portions. The AEX index positions (including options with long maturity), the Euronext stock options and the Eurex stock options were offered as separate batches. The word is Liquid Capital has taken over all the positions.
Alphabay has never been a popular firm. The former managers at Van der Moolen appeared to have outsmarted the VDM liquidators, taking over VDM’s derivative positions against a steep discount of 3,5 million. The rest of the market suggest foul play. Reliable sources suggest the 3,5 million catch has been burned completely in the past year – there’s nothing left for the partners and they may even have lost their investments.
The persistent (but yet officially unconfirmed) rumor is the remaining positions have been sold to Liquid Capital. The irony is the former head of Van der Moolen unit in Zug is responsible for the single stocks at Liquid. He would be effectively buying back a part of his own former positions. It is a small world after all. In a fair auction, KBC served as independent observer, the price won’t be spectacular.
If trading remains thin, two other spin-offs from Van der Moolen are in a very fragile position. Caerus and, to a lesser extent, WEBB would need additional capital to reach 2011. The former Alphabay director in the newspaper could be right, suggesting more firms would go belly up in this climate. Another firm by Van der Moolen traders is definitely faring way better, read the entertaining story on Briargate.