Wednesday, 27 August 2014
Last updated 1 hour ago
Apr 28 2010 | 7:56am ET
The futures-trading loophole that allowed hedge fund Amaranth Advisors to gorge itself on the natural gas contracts that killed it is no more.
The Commodity Futures Trading Commission has imposed new trading limits on seven contracts traded on the electronic Intercontinental Exchange.
In September of 2006, Amaranth, facing limits on trading at the New York Mercantile Exchange, turned to the ICE to buy lookalike natural gas futures. The hedge fund then proceeded to lose more than $6 billion on those contracts—making it one of the largest trading losses in history.
Exemptions from some electronically-traded contracts were adopted in 2000, pushed for by Enron Corp., the failed energy company for which the provision is known.
The ICE-trading contract used by Amaranth was the first to see limits imposed in February under new authority granted the regulator two years ago. Six other ICE-traded natural gas contracts have also had holding limits put into place.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...