Local power trader Einar Aas is believed to be the defaulted clearing member at Nasdaq Clearing after his positions were closed by the exchange, according to local reports.
In a press release written by local power dealer Aas, he explained that his positions were closed at Nasdaq after suffering massive losses in the power market.
Nasdaq Clearing declined to comment.
"On Wednesday evening, my entire portfolio was forcibly sold by Nasdaq, resulting in a very large personal loss."
"The consequence of this is chord or personal bankruptcy, it's called," Aas said to the local press.
On Wednesday, Nasdaq Clearing announced it had declared a member in default on September 11 due to extraordinary price movements involving CO2 and coal.
The close out resulted in a loss for Nasdaq Clearing amounting to around 100 million euros, which exceeded the defaulting member’s collateral and default fund contribution.
Nasdaq Clearing said it will send a notice to default fund participants the following day (Thursday) to outline the replenishment contribution they will
A Nasdaq spokesperson confirmed that the default was a consequence of price movements in the Nordic power market, which resulted in the member being unable to provide the relevant variation margin.
“Power prices in the Nordic have decreased a lot the past week driven by heavy rain and wet weather forecasts, while the German prices have increased due to a strong increasing in CO2 (EUA) and coal prices,” said Georg Aasen, president of Nasdaq Oslo, in a statement.