[Thane_Banquo]

I am a portfolio manager for a hedge fund in Chicago, so I’ll give an insider’s view on Ospraie: A number of weeks before Ospraie went under, the CFTC issued a statement that a large player with huge positions had its commercial status revoked in a number of commodities. What this means is that the firm had the status that its actions in the futures market were to hedge its exposures as a commodities producer or processor. This would allow it to get around the legal position limits.

The rumor going around in some circles in the market is that firm was Ospraie. They had to liquidate their huge commodities positions, and since the market couldn’t absorb such a huge liquidation, the prices tanked and Ospraie got killed.

[TigerLikesRooster]

Would CFTC continue to go after all those exploiting loopholes or just big ones?

[ThePythonicCow]

the prices tanked

How many more large commodity hedge funds would you guess are going to blow up in the near future?