According to Britain's Daily Telegraph, a 34 year old broker (nonetheless described as "senior and longstanding") with a small, London based oil trader managed to trade more than $500 million of oil futures in the middle of the night, moving prices by nearly $2 to an eight month high. The problem - he was drunk.
The events have recently been revealed following an FSA investigation:
According to the regulator, Mr Perkins first started trading irregularly the day before the enormous price spike. He had been drinking heavily over the weekend at a PVM golf event and was returning to a day off work. As a broker, Mr Perkins was only allowed to place trades on behalf of his clients – not using any of PVM's own money. And records show that he placed a legitimate order for a client at 1.34pm through his broking desk by telephone. This was quickly followed by seven more orders with a value of $8m using PVM's cash. Mr Perkins' trading stopped for a few hours, but in the early hours of the morning, he returned to the oil market via his laptop. He placed an incredible $520m in orders through ICE Futures Europe, where traders can buy or sell crude oil for future delivery and bet on whether prices will go up or down. The first trade was at 1.22am was at $71.40 per barrel and the last trade at $3.41am was at $73.05. During this period, Mr Perkins gradually edged up the price by bidding higher each time, until he was responsible for 69pc of the global market volume. By 6.30am, the broker appeared to have realised what he'd done. He sent a text message to the managing director claiming an unwell relative meant he would not be coming in to work and started disposing of the oil futures. When PVM challenged his story, the broker confessed and later co-operated fully with the FSA inquiry. Mr Perkins told investigators that he has "limited recollection" of the entire episode, claiming he had placed the trades during a drink-induced stupor.
What can you say?!
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