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To: bob wallace who wrote (9408)	11/4/1997 11:17:00 AM
From: Patrick Slevin	Read Replies (1) \| Respond to of 17305

From what I'm told, once Refco figures out what VN cost them the news about the trades will hit the media. This is e-mail from a CBOE member... He {VIC } was most likely a big factor in the poor market quality many people found in S & P derivatives on Monday's halt and Tuesday's opening. If you look at B/A spreads in S & P 500 products at Tuesday's opening they were very (IMHO)extreme..even for the conditions that existed. and this from another trader... ~~~~... the whole point is, HE HAD NO MONEY TO PAY MARGIN. They can't just get on the phone and raise margin in a fast market~~~~~....~~~~~ Look at the risk they carry. Granted that is the business they have chosen, but they have the right to cut their losses short just as traders do. Refco did not "stay out of it", they forced Vic's hand in closing the trades and they probably forced his hand in declaring bankruptcy )if that is true. And it sounds like they will pay for it....but they had to do it. Of course, all this is skuttlebutt.

To: bob wallace who wrote (9408)	11/11/1997 8:07:00 AM
From: Patrick Slevin	Read Replies (1) \| Respond to of 17305

Trader Vic... If you are still interested this is a part of an e-mail recieved from a CBOE member. "... They (Refco) could have bought Vega and in fact there was a huge OTC vega trade that hit the market late the Friday before. It would have been impossible to hedge out what happened to Niederhoffer because the way the exit trading was done it had the appearance of a paniced attempt to get out. The additional problem is EVERYBODY in the community knew it ,was him coming out of the trade and the S & P community did a wonderful job of just slaughtering him on his exit trades. Some options were 10 to 15 points wide in bid/offer spreads....who do you hedge that out? Tough group.