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IB demands changes following huge options losses on Eurex

by Jim Kharouf

Interactive Brokers Group (IB) has blamed Eurex for substantial losses made on the exchange’s equity options market. IB said its $37m dent was due to mispriced options and market manipulation.In a filing with Securities and Exchange Commission, IB revealed the $37m hit incurred during May on Altana, a German company that had just declared a special dividend in conjunction with the sale of its pharmaceuticals unit. IB has alleged that Eurex priced options on Altana incorrectly and that they were “not calculated to reflect values corresponding to the change in the value of the underlying stock”. As such, IB has contended that the price was set 25% below the regular trading session’s final price and the price was set by “buyers...

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