Ethanol and Kospi trading losses

the trading shop that had the software bug has been mentioned in this blog before… About buy 120k orders were sent in the market, contract value is about 15 trillion KRW (1.4 billion USD). Out of these, 25k contracts were filled, as a post-margin account the margin of about 30 billion KRW (28 million USD) was deposited to KRX the next day, unknown if the margin was covered by the client or the korean broker (securities house)…

‘This product is uncharted territory for me’

aren’t you a trader, how about looking up a chart and get into charted waters?

‘Here’s the chart of the Dec Ethanol CBOT future, Buttonwoods graveyard.’

what are we looking at? corn had massive spike mid-year due to drought, ethanol as a derivative followed course, then? trader was still quite long and got squeezed out year end?

hmmm~ so the margin was covered by the clearing firm not the broker?, I know this Dutch firm does clear for many prop shops in Asia… interesting

@ 8:27 the dutch clearing firm is not a member of KRX as only korean securities and futures firms are members. If the prop shop were to go bust the margin call would have to be covered by the broker… did not know that the dutch firm had covered for the prop shop

@9:10 That’s what I thought, that they would have to use a Korean broker. The Dutch firm would probably be the party where they borrow from though.

Apart from the loss I wonder what the consequences will be from the Korean regulator. They are notoriously anal about people breaking rules (like the 5000 open futures position limit).

Seemed like the order sat in the market for an hour…Maybe they were bullish. Allard perhaps?

What about if you bypass the broker router by creating your own? Might be illegal but certainly faster.

@4:40 pm

What firms ?

Imc is not American and they’ve just closed office HK.

on a long enough timeline, the survival rate for everyone falls to zero

@ 3:55 It is not checked per account but by the Investment Registration Certificate (IRC) given by the Korean Financial Supervisory Service, you can have mutliple brokers and many accounts but you are tracked by the KRX by the IRC.

Algo failed because of looping, they had to kill the daemon on client’s end as broker lacked control mechanism because orders did not go through broker’s check. Once the client gateway server was disconnected massive orders were already in, broker had to resort to KRX contingency system which is a really old computer and you can cancel orders manually one by one…

BTW IMC already trades in Korea

@4.40pm: Which firms are looking to open up in Asia? Sounds somewhat unlikely to me.

great guys at Eclipse ….. sorry to hear if it was them

according to latest recruiter disappointment eclipse is business as usual… how much capital did they have to swallow a 17 million loss?

“according to yonhap news in korea eclipse realised a loss of 17 millio USD. can anyone confirm if they are going bust?”

Link please.

‘according to latest recruiter disappointment eclipse is business as usual’

recruiters are even worse than brokers, they are the scums of the scums

doesn’t take away the fact as to their feeding mechanism, worse than leeches

what’s a leach? leech?

Faggot grammar nazi

What nazi has to do with this news ?

‘Who is really the leach’

mm at level 1
broker at level 2
headhunter at level 3

?

‘not the other way around, whatever it is you think.’

other way around what ?

‘no reason to employ such people once computers have got it covered’

yes sure, your point? technology has made human physical effort redundant for hundreds of years, what are you gloating about this little bit?

‘i’d be learning c++ or similar if i was you’

i’d rather kill myself than become a techie programmer, kapish?

What is RDD doing these days ?

Whats Ralph Van Pot doing now….

i have too much money in the bank account dee dee deeh de dee dee

was it merger arb? how long on tnt? any shorts against it or long some puts at some strike?

you can’t just be long some shit without concrete stop loss.

well, apparently you wouldn’t live to fight another day then

a stop loss wouldn’t have saved you here

Buy 10′s. where’s the offer now?

Buy em

of course there are lawyers involved, eclipse didn’t intend to have that many orders in the market/leave alone get executed on those, there must have been technical glitch and now lawyers can play on that technicality

who is this ‘well-known Dutch clearingfirm’?

‘only a bit less Netliq’

didn’t they loose 10mil? did they have have 30mil netliq to begin with?
who are the shareholders to whom the 10mil loss is attributable to?

wishful thinking. they ain’t that profitable, not even close

@ Jan 18th 2.12am:

1) ABN Amro Clearing
2) ‘a bit less Netliq’ was somewhat cynical. Market would still be 5-15 according to the readers of this blog. My own market would be 12-18 btw.

anyone any idea who messed up in the kospi 257 put today?

Hard to guess a potential loss. Someone fired in a huge amount of small lot bids at multiple price levels. Total bid size in market about 80,000 lots at one point, highest at a single price level about 15,000.

Started cancelling after a while but got filled on a decent amount – but I suspect most of which they traded with themselves.

Biggest trades were happening at 9.29.24 Seoul time

Also, open interest only increased by about 10k during that time whereas trading volume was multiples of that

so eclipse boys. how is the year end bonus?

So IMC boys. How is year end bonus. Getting screwed

Dutch women look like men

lol, there are enough sexy dutch babes out there, come out to ‘dam, quite bit prudish, makes ‘em even more sexy

no, its your mama

Guys its been a tough year for bonuses all right so Chill.

Eclipse falling apart? Who has actually left since the kospi incident?

When you are broke act like you need the money.

Maybe tony should just ask to get bailed out by his junior boys at Tibra.

Expect a cross border m&a deal from Tony’s friend in Chicago

then will they start trading hk single stocks again? they have completely dissapeared from the screens

what about rxh3? It’s been selling off like the whole curve, but the curve flattening is what is causing the pain, street is refering it to as great position hunting, what’s going on in the omon?

anyone was responsible for the error trades?