Quant Opinion: Risk Management and The Rogue Trader cfainstitute.org
Please join us as we welcome Thomas Coleman, author of the latest publication by the Research Foundation of CFA Institute A Practical Guide to Risk Management as he discusses the $2 billion-plus loss at UBS and provides…
This isnt rocket science. first of all if you have a massive posn long or short why would that not trigger a flag in the system. ie if someone builds up huge long posn and as they build it up they sell off a “synthetic forward” as a hedge why would no one pick up on that. Whose monitoring the cash movements. It sounds like ubs has no risk management whatsoever
NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!