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Ronin Capital Blows Up, Unable To Meet CME Capital Requirements After VIX Trade Goes Wrong

• https://www.zerohedge.com, Tyler Durden

Well, no more: according to CNBC's Scott Wapner, one of the CME's direct clearing firms was unable to meet its capital requirements on Friday, forcing the exchange to step in and invoke its "emergency protocols" to auction off the firm's portfolios.

The firm in question: Ronin Capital, which on its website says "seeks the best and brightest people who embrace our Firm's culture, and can thrive in a dynamic, entrepreneurial trading environment." Apparently, that also meant being unable to quantify your risk exposure.

Terry Duffy, CME Group's Chairman and CEO, told CNBC the auction process was completed Friday morning, but said the group doesn't disclose who assumed the portfolios in the auction.

Duffy also said that under its clearing agreement, Ronin isn't allowed to have outside clients so there were no customers harmed in the process.

Or at least not directly: after all, like every other prop trader, Ronin invests outside capital, and in this case said capital is about to be much less.


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