Forget the headlines: What you really should know about the nasdaq default
You’ve probably seen the headlines about the trader who blew ‘€100m hole in Nasdaq’s Nordic power market’. This was a timely reminder of the potential impact of market defaults, coming as it did 10 years after the failure of Lehman Brothers. Every clearing house member rightly worries about their contribution to the mutual default fund being used to cover losses […]
The post Forget the headlines: What you really should know about the nasdaq default appeared first on OpenGamma.
Bill: The key sentance towards the bottom is this: "Nasdaq have already increased the margin rates on the power market and engaged a third-party to review their risk management."