Dutch:
The increase in position and subsequent position limit violation was due to
two factors. First, a long position was moved into the long-term exotics
book due to the nature of the position. I am currently using the ltx to hold
longer-term strategic positions. The large increase in position is a
reflection of my view of the market.
Second, a large customer transaction originated by Fred Lagrasta's group was
transacted at the end of the day Monday and was not able to be hedged until
this morning. Hence a large position increase occurred for yesterday's
position and a corresponding decrease occurred today.
John