Optionable, based in Valhalla, New York, saw its shares fall 60% today to $1.126. But chairman Albert Helmig said: "We are never pleased when losses dominate for one of our clients, but we do not design or help to design their strategies, nor are we financial advisers.... We believe strongly that our brokerage and execution services are and have been rendered appropriately, professionally and correctly."
In a filing with the SEC yesterday, Optionable said that "it is likely that BMO’s statement and suspension will have an adverse effect on the Company’s business". Optionable could also suffer from increased competition now that Nymex has launched electronically traded energy contracts (see Nymex launches electronically traded options on energy and base metal contracts), which could compete with contracts on Optionable's Opex trading platform.
The week on Risk.net, January 6–12Receive this by email