Collins hedge blow up could hit UBS, ABN deal

The collapse of a hedge fund controlled by former president and CEO of New York Mercantile Exchange (Nymex) Bo Collins could scupper the proposed takeover of ABN Amro Futures by UBS.

The fund, Motherrock, is reported to have lost almost all of its assets, understood to be around $450m, after a series of wrong way bets on a volatile natural gas market. It said it was in the process of developing a plan to wind down the fund.

ABN Amro was believed to be...