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Wednesday, 7 December 2016
Last updated 10 hours ago
Jul 26 2007 | 11:16am ET
The following excerpts of instant-message conversations between former Amaranth Advisors energy trader Brian Hunter, fellow ex-Amaranth trader Matthew Donohoe, other Amaranth chief energy risk manager David Chasman and a trader at another firm were included in the Commodity Futures Trading Commission’s complaint against Hunter and Amaranth, filed in New York federal court yesterday.
Feb. 24, 2006 (expiry day for the March 2006 New York Mercantile Exchange natural gas futures contract), between Hunter and a natural gas trader at another firm, from 1:31 p.m. (Eastern time) and 1:35 p.m.:
Hunter: We have 4000 to sell MoC [market on close]
gloverb: come on
gloverb: unless you are huge bearish
gloverb: why the f would yo do that
Hunter: all from options yesterday
Hunter: so we ll see what the floor has
Hunter: bit of an expiriment mainly
gloverb: what the f
gloverb: that is huge
Hunter: I think John [Arnold] and Sempra [Energy] are sellers too
A few minutes after the start of the closing range, “gloverb” asked Hunter, “arent you done”? Hunter replied, “no…have a lot more to sell…waiting until 2:20.”
On Feb. 24, in the middle of the closing range, Hunter IMed Donohoe to say “today came together quite nicely.” Later, immediately after the closing range at 2:30 p.m.:
Donohoe: h [March contract] will settle lower
Donohoe: and h/j wider
Hunter: I am flexing here
Donohoe: looking preety bang on
Donohoe: we already mimicked
Donohoe: 2nd best…sept/oct last year still the best
Donohoe: oh yeag
April 26, 2006, between Hunter and Amaranth energy risk manager David Chasman, from 12:48 p.m. to 12:56 p.m.:
Hunter: FYI [John] Arnold is getting scary short into the [Energy Information Agency gas storage] number tomorrow
Chasman: what u think arnold has?
Hunter: we are rolling size into may
Hunter: and I am worrie that Anold has taken the other side of everything
Hunter: so either he runs it up to the close today and gets short tomorrow
Hunter: or has a HUGE view on the number tomorrow
Chasman: other side of everything meaning buying from everyone else selling – or buying from [you]
Hunter: no buying may and selling June…with me
Chasman: does he know what [you are] up [to] [with respect to] rolling off length?... sorry rolling off short
Hunter: I think it is more that he thinks its going to get [f…d] tomorrow
Hunter: me may try to help it by running the market up on the close
Chasman: kinda hard to do when selling – no?
Hunter: Arnold is the master of moving the close?