NPD losses force wind down

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NIBC Petercam Derivatives (NPD), the Belgium-based equity derivatives specialist, has been forced to close its business after racking up millions of euros in trading losses on its portfolio of exotic equity options. The losses – which could exceed €60 million, according to some estimates – were caused by a failure to properly price the decline in equity implied volatilities over the past 18 months.

NDP clients such as Fortis Investment Management, Dexia Asset Management and KBC Asset Managem