Einar Aas lost $120M on Nordpool power derivatives — a rogue trader in Norway

Einar Aas was a Norwegian trader who engaged in unauthorized trading of Nordpool power derivatives — futures and options contracts on the Nordic electricity exchange. The Nordpool market is the leading power market in Northern Europe, and its derivatives are used by utilities and energy companies to hedge electricity price risk.

Aas accumulated large speculative positions in Nordpool power derivatives without proper authorization or oversight. When the market moved against his positions, the losses mounted to approximately $120 million (EUR 100 million). The case was one of the largest trading losses in the Nordic region's history.

The unauthorized trading was eventually discovered, and Aas was held responsible for the losses. The case highlighted the risks of inadequate trade surveillance in the Nordic power derivatives market, where a single trader could build up positions large enough to threaten the stability of their firm.