Weavering Capital collapses over 637 million derivatives position

A

ASusilovic

A $639m (£440m) London hedge fund collapsed on Thursday night after the discovery that the main asset of Weavering Capital’s flagship fund was a $637m derivatives trade with an offshore company controlled by the fund’s founder and chief executive.

Weavering Capital called in administrators on Thursday and its Weavering Macro Fixed Income fund was put into liquidation in the Cayman Islands, after claims the trade could not be paid. Weavering froze the fund a week ago after discovering the position and calling in PwC to investigate.

http://www.ft.com/cms/s/982b4e44-14...c.html&_i_referer=http://ftalphaville.ft.com/

Hum...Somebody hit the wrong button...
 
Wrong button? I'd suggest this wasn't a 'fat finger'...

Come on, it's someone putting on a trade with themselves and then marking it in their favor on both sides. Works wonders until it gets found out...

Those sneaky Scandies :)!
 
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