Star Trader’s Default Still Rattling Power Market a Year Later
- Nasdaq toughened rules on exchange in Europe to reduce risk
- Einar Aas sold Warhol painting and mountain cabin to pay debt
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The expulsion of Einar Aas from Nasdaq Inc.’s commodities unit in Europe is continuing to rattle power markets a year after the trader racked up more than $100 million in debt from bets he couldn’t repay.
The default of the Nordic market’s most successful trader forced Nasdaq to focus on restoring confidence to the market. Buying and selling of electricity has been on the decline for years, and the Aas scandal only made matters worse. Activity in 2018 dropped to the lowest in two decades and volumes are down another 21% this year through August. Less trading has widened spreads, especially on contracts for the years ahead, according to market participants.