Rogue trades cost oil broker $10m

A rogue trader at a London oil broker caused his employer to lose $10m (£6m) after making unauthorised trades.

PVM Oil Futures said it was a "victim of unauthorised trading on Tuesday June 30" and said it was conducting a full investigation.

PVM said it had informed the Financial Services Authority and the InterContinental Exchange, which is where much European trade takes place.

The trades are thought to have caused a jump in oil prices on Tuesday.

London Brent crude rose as high as $73.50 a barrel on Tuesday before reversing sharply in volatile trade. Brent crude oil settled at $66.65 a barrel on Thursday.

‘Loss suffered’

PVM said it was now conducting business as normal.

"As a result of a series of unauthorised trades, substantial volumes of futures contracts were held by PVM. When this was discovered, the positions were closed in an orderly fashion. PVM suffered a loss totalling a little under $10m," the company said in a statement.

Oil is the world’s most heavily traded commodity, with trading centred on the ICE in London and the New York Mercantile Exchange or Nymex.

Brokerages like PVM place orders on behalf of large banks and hedge funds. </p

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