Fortum hit with a $ 23 million Nasdaq bill after the Norwegian trader flop

OSLO (Reuters) – Finnish energy firm Fortum will pay about 20 million euros ($ 23 million) to help replenish the Nasdaq Commodities reserve fund after the bankruptcy of a Norwegian private trader, the company said on Friday. .

Einar Aas, a former derivatives trader who made big bets on the energy market, left a hole of 114 million euros in the fund as raw material companies part of the chamber Nasdaq clearing companies are obliged to cover.

"It's a big position and a big loss that have clearly affected the default fund," Maans Holmberg, director of investor relations at Fortum, told Reuters.

"It's important to look at the processes. It is very important that the Nasdaq assume this responsibility, "he added.

Clearing houses such as the one operated by Nasdaq are essential to market stability, acting as an intermediary in equity, bond or derivative transactions and guaranteeing their completion if one of the parties goes bankrupt. .

Aas did not respect the required payments, called margin calls to Nasdaq, to ​​insure against the losses on Tuesday.

On Thursday, the Nasdaq declared that the reserve fund had taken over its own contingency fund of 7 million euros as well as two thirds or 107 million euros of a shared contingency fund whose members of its operation of compensation are responsible.

The Nasdaq sold off the trades and offered the Aas portfolio to several potential buyers on Wednesday. Fortum said that he had bid unsuccessfully.

Fortum and other members, including Norwegian energy giant Statkraft and oil and gas giant Equinor, have been invited to pay their share in the reserve fund within two business days or risk being themselves declared in default.

Fortum stated that its initial stake in the contingency fund was approximately 30 million euros and that its third quarter results will represent approximately 20 million euros as a financing cost.

SHOPS GONE SOUR

The trader's bet has returned against exceptionally strong regional market fluctuations, while heavy rains have driven down prices in the hydro-dependent Nordic region, while an increase in price carbon has pushed up German prices.

"My position was too big in relation to the liquidity of the market," Aas said in a statement on Thursday, adding that it risked bankruptcy.

According to the economic magazine Kapital, Aas, which maintains a limited public profile, had in 2016 an estimated net worth of 2 billion Norwegian kroner ($ 244 million).

Meanwhile, other Nasdaq members were informed of the amount to be paid.

Statkraft told Reuters it would pay 5 million euros to the fund at the request of Nasdaq.

The largest Norwegian firm, Equinor, said it also received a payment request from it, but the amount was minimal.

(1 dollar = 0.8548 euros)

($ 1 = NOK 8,2109)