RONIN Capital is no more

Asked some ex-Ronin traders if they knew anything. They don't know what is going on either and haven't heard from anyone. Downtown Chicago is completely shut down, so Ronin guys probably couldn't even go in if they wanted to, and the trading floors (CME & CBOE) are probably finally closed for good. Will update this thread if I hear anything.

MF Global was a complete disaster for any traders who cleared them, especially option traders/groups with big positions. Not sure if the CME assisted, but my friend's group that had a huge Treasury option portfolio, had to scramble to find a new clearing firm to take on all their big positions in the 5s, 10s, and 30s. They were literally shut down (could not trade) for almost a week and lost big money because of it. I believe they sued the CME for not backstopping them and acting as a clearinghouse of last resort.

I was forced to sell e-mini S&P 500 futures in my trading account at Advantage to cover a position of a trader I backed at MF Global. After this unmitigated disaster I decided to keep only the bare minimum amount of capital in my account, knowing that these clearing members could go out of business at any given moment.
 
I have clients who got caught up in the MF and PFG Best fiascos. I now give them the same advice - keep your trading account balances in the light side. You can always wire funds within an hour. :thumbsup:

VolSkewTrader said:
After this unmitigated disaster I decided to keep only the bare minimum amount of capital in my account, knowing that these clearing members could go out of business at any given moment.
More...
 
HobbyTrading said:
In the Dutch press is it speculated that this is related to Ronin:
https://www.reuters.com/article/us-abn-amro-results-coronavirus-idUSKBN21D1NE
More...

ABN Amro's $200M loss reportedly came from Parplus Partners
ABN Amro Bank's net loss of about $200 million from its clearing business came after hedge fund Parplus Partners failed to meet the minimum margin call on a loan and ABN was forced to close out its positions, sources say.

https://www.risk.net/derivatives/7514381/hedge-fund-parplus-said-to-be-source-of-abns-200m-loss

https://www.wsj.com/articles/abn-amro-takes-200-million-loss-on-u-s-client-11585225229?mod=rsswn
 
From the now-defuct homepage:

Parplus Partners, LLC (“Parplus”) is an alternative investment management firm based in New York City.
The founders of Parplus originated from a long established Chicago-based proprietary trading firm with deep roots in options and futures trading. Parplus utilizes a wide array of uncorrelated, fundamental, relative value trading strategies, with potential for attractive returns in periods of price discovery, i.e. volatile markets.
 
ABN AMRO Clearing: Source of $200 Million Mystery Loss Revealed
“You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something – your gut, destiny, life, karma, whatever.” – Steve Jobs



In an article published today (March 26) by Risk.net based on a statement also released today from ABN AMRO (below), new details about the demise of Ronin Capital emerge – along with that of a “mysterious second default.” According to Risk.net, a spokesperson for ABN AMRO has repeatedly suggested Ronin was not the source – a US client – of the $200 million (net) loss.



It’s just a matter of time now before we learn of another potential victim of this latest volatility spike…

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Update 9:59PM NYC:

Well, that was fast! The source of $200 million loss revealed by Risk.net as New York-based Parplus Partners, an equity volatility hedge fund with close ties to Ronin…
 
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