Mitsubishi Corp , Japan's biggest trading house by revenue, said on...
), Japan’s biggest trading house by revenue, said on Friday a trader at its Singapore-based unit has lost $320 million through unauthorized transactions in crude oil derivatives, and the matter has been reported to the police.
In what will be a reminder of the collapse of Barings Bank after Nick Leeson’s trades in Singapore in 1995, and the huge losses at Societe Generale by rogue trader Jerome Kerviel in 2008, the trader that Mitsubishi has alleged carried out a series of unauthorized trade this year disappeared in August.
While PDS has closed the positions, “we are now examining the total amount of losses,” Mitsubishi said, adding that the issue has been reported to the police and the trader’s contract terminated. Mitsubishi said it could not identify the trader. “It’s a bit surprising in the Japanese houses there are a lot of checks and double-checks but I’m not sure what automated compliance systems there are, or if they have any,” said one long-time trader in the Asian market, who has worked at a Japanese trading house.
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