Real estate firm Phanos is definitely experiencing difficulties in the struggle for survival. It didn’t pay interest on their bonds. Generally speaking not a very positive signal. That’s bad luck for FC Utrecht and their players.

Anyway, apart from sponsoring a football club and doing some real estate business – there’s a relevant angle on this news as well. Phanos is the owner of well-known broker AFS Capital Management. As indicated earlier, AFS will be sold by Phanos. Now we know why.

Mittal

Unrelated to FC Utrecht, Phanos and AFS has been the trading in options on Arcelor Mittal this Wednesday. Spin-off Aperam started trading today, and some market maker had a different vision on the valuation of front month in the money puts. Started by paying some extra for buying ‘m, and hours later paid outrageous prices against the rest of the market – for size. Scaring away all other market makers. Confidence in your prices is a good thing, but don’t exaggerate it next time. Overconfident market maker lost around a million. Expensive lesson, and painful too. Taking into account the size of the trades, it looks like a major market maker messing up. Question is.. which one?

Jack
Jack