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SEC Charges Traders with Reg. M Violations

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July 2, 2014

 Dear Friends,

 Today, the SEC charged five traders with violating Rule 105 of Regulation M – short selling in connection with a public offering (Reg. M).  The traders agreed to pay a collective fine of nearly $750,000.

 Reg. M prohibits purchasing securities in follow-on and secondary offerings when the purchaser has effected short sales in the securities within a specified period, prior to the pricing of an offering – the restricted period. In this case, from 2009 – 2012, the traders repeatedly sold shares short during the restricted period and purchased offering shares of the same securities they shorted.

 Please click here for the SEC’s release. Please feel free to contact us with any questions at (212) 867-0200 or email us at info@counselworksllc.com.

 Thank you,


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CounselWorks is a strategic business and regulatory consulting firm, that provides project-based consulting and manages compliance and regulatory programs for hedge funds, private equity firms, investment companies, broker-dealers and investment banks.
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