Man, I just realize that it is Friday today! I was extremely busy with my work this week (and, ok, I am following Australian Open as well 🙂 ). All I have is just a couple of hours after London session open. So, no trade at all. I hope to get back to swing next week.
Here we go, another rogue trader who’ve thrown SociĂ©tĂ© GĂ©nĂ©rale into €4.9bn crisis.
SocGen said the “exceptional fraud” resulted from the purchase of huge long positions in “plain vanilla futures hedging on European equity market indices” that were “beyond his limited authority”.
The trader – likely to trigger comparisons with the UK’s Nick Leeson, who caused the collapse of Barings Bank in 1995 – had “deep knowledge” of risk-control procedures from his time at the bank’s middle-office activities, which SocGen said had allowed him to conceal his positions.
Does it really help to have ‘deep knowledge’ of risk-control procedures ? uhm…
This raises an interesting question of how many times us retail traders have breached our own risk management conditions. We know that nobody else is watching, and many of us don’t even have firm rules written down anywhere, let alone hard coded in our trading programmes.
I trust myself least of all, and place a large chunk of my funds in an account that takes 3 days to access. Its good cooling off time.
This raises an interesting question of how many times us retail traders have breached our own risk management conditions. We know that nobody else is watching, and many of us don’t even have firm rules written down anywhere, let alone hard coded in our trading programmes.
I trust myself least of all, and place a large chunk of my funds in an account that takes 3 days to access. Its good cooling off time.