In the fallout from the well-publicised decline of hedge
fund Amaranth, hedge funds and industry watchers were last week
wondering whether $6bn in losses the fund took in the natural
gas markets would provide more ammunition in Congress to
further regulate OTC markets.
Intercontinental Exchange (ICE) has come under media fire
for its supposed role in the Amaranth case. Sources said that
New York Mercantile Exchange officials and other broker sources
have pointed the finger at ICE's OTC business knowing about the
fund's positions and not acting on the information. The facts
emerging in the Amaranth case indicated that the fund spread
its natural gas positions over several markets, including
options positions on Nymex's ClearPort OTC clearing platform
and on the voice broker market.
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