Wednesday, 24 August 2016
Last updated 17 hours ago
Dec 29 2010 | 4:51am ET
Hedge fund Platinum Partners has sued the Chicago Board Options Exchange, accusing it of accidentally giving some investor advance notice of a change to the strike price of a listed fund.
The New York-based firm said it lost $10 million when the CBOE and Options Clearing Corp. mistakenly cut the strike price on India Fund options and then improperly gave that information to some market participants. In addition to the CBOE and OCC, Platinum names the sellers of the India Fund options as John Doe defendants.
“We’re not the litigious type of people,” Platinum chief Mark Nordlicht told Crain’s Chicago Business. “It’s just an unfortunate situation. There was clearly some insider trading that went on before the decision was publicly announced.”
Platinum’s suit was filed in Illinois state court in Chicago.
While Nordlicht may not be the litigious type, he’s certainly seen the inside of a courtroom before. In addition to leading Platinum, he is the co-founder and chairman of commodity broker Optionable Inc., which has been sued by the Bank of Montreal for allegedly helping a former trader conceal losses.