Nymex to sue Optionable, SEC launches investigation

New York based brokerage Optionable could face legal action taken by New York Mercantile Exchange (Nymex) after its involvement in trading losses incurred by Bank of Montreal (BMO) earlier in the year (see FO Week Vol 12 No 18), a role for which Optionable is reportedly being investigated by Securities and Exchange Commission (SEC).

Market rumours suggest that Optionable may have been responsible for possible "valuation irregularities", while Nymex has indicated that the brokerage may have been aware of the possible trading losses made by BMO before the deal between itself and the exchange completed...