How to lose $100 million in 24 hours

One of the richest Norwegians, Einar Aas, lost $ 117 million to Nasdaq Nordic between Monday and Tuesday, trading electricity. This week, the difference in prices for German and Norwegian electricity has expanded considerably, and Einar Aas puts forward a position predicting that the gap between the two markets will be normalized. The spread between the two prices during this week is shown on the chart.

Mr Aas's massive position bypassed many of Nasdaq's position sizer limits, with the loss costing $107 million to Nasdaq's insurance fund. The Nasdaq announced they will ban Einar Aas from trading on their exchanges after this incident.

Einar Aas is the largest taxpayer in Norway in 2016. He earned NOK 833 million ($ 122 million), of which he pays NOK 227 million in taxes. In a brief statement, Mr. Aas said he has suffered serious losses and is likely to declare bankruptcy.

Mr Aas' state is estimated at $ 245 million in 2016. The Norwegian began his career with his own savings of $ 30,000.

Sources: Bloomberg Finance L.P., The Financial Times

Graphic: Used with permission of Bloomberg Finance L.P.

Image: pexels.com

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