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Something smells......How would you handle a large unsecured debit.
Last count shows he has an unsecured and the fund has a larger
unsecured. His loss is rumored at about $50,000,000 and the fund's
unsecured..carried by Refco..is a very large number that you'll see made
public as sooon as it is resolved.
I'm not certain given the size of the unsecured that any choice exists,
but putting a value on the character of the activity would be an
individual decision. It sounds like he didn't have any choice.
He wass most likely a big factor in the poor market quality many people
found in S & P derivatives on Monday's halt and Tuesday's opening. If
you look at B/A spreads in S & P 500 products at Tuesday's opening they
were very (IMHO)extreme..even for the conditions that existed.
The way the affair was handled calls into question the overall market
quality in S & P futures and options. Both at the CME and at my shop as
well.
There was also very little evidence that Soros had any size the S & P at
all on those days. He took his hits in straight long and short
positions.
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