- Posted September 3, 2013 by
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- Brokerage Removes Press Release Linking BMO CEO Bill Downe to Fraud
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- Bank of Montreal's Impossible Mission
Optionable's first statement in six years
On July 28, 2013 the statement below appeared on Optionable's website.
Optionable Updates Litigation Strategy
July 28, 2013
Optionable announced today that upon examination of evidence relating to
the collapse of its business and share price, clear evidence of actions by Bank of Montreal (BMO) and The New York Mercantile Exchange (NYMEX) as being the cause of such collapse has emerged.
In May 2007, BMO, in the midst of significant market losses after previously
announced gains, executed clear strategy to do whatever necessary to steer
attention away from its risk management practices. In fact, internal communications at BMO between BMO and its crisis public relations firm states clearly "we feel the strategy of assigning blame to Optionable............ has been effective to date". The communication then suggests "redirecting the spin by suing Optionable" as a way to focus the media attention on Optionable.
Optionable had been high profile based on its position as a first mover in the
options technology space and based on the New York Mercantile Exchange
(NYMEX) having bought a minority interest in Optionable.
Incredibly, BMO did in fact sue Optionable and litigation is now pending. NYMEX then piled on based on the "supposed" bad actions of Optionable and
alleged breach of contract relating to their purchase of minority interest in Optionable.
NYMEX, which had taken a minority interest in Optionable, was
contractually required to be engaging in technology cooperation and joint
marketing. Instead, NYMEX launched a competing product to Optionable on the platform of the Chicago Mercantile Exchange (CME) thereby setting up their own ten billion dollar purchase by CME. Optionable has filed significant counterclaims against NYMEX .
“Actions by BMO and NYMEX caused approximately 500 million in actual
market value destruction to Optionable shareholders, said Optionable CEO Dov Rauchwerger. " In addition, the potential for billions more, based on Optionable's clear lead as the first options platform able to handle complex options trade was lost. We will not cease to fight until BMO and NYMEX (now CME ) are held accountable for our beleaguered shareholders actual losses and lost opportunities". Optionable will be providing timely updates to shareholders as further investigations of the actions of BMO and NYMEX in this matter are undertaken and as management determines further steps to take in order to recoup value for shareholders.
Optionable was the developer of a groundbreaking options trading platform for professional options traders. In May 2007, actions by Bank of Montreal (BMO) and the New York Mercantile Exchange (NYMEX) destroyed five hundred million in market value and billions more in lost opportunity costs. Its business destroyed, the company is now actively investigating and pursuing all avenues to hold NYMEX (now CME) and BMO accountable.