Tuesday, 30 September 2014
Last updated 2 hours ago
May 9 2007 | 12:02pm ET
Prime brokers may be checking those trades twice after an NASD arbitration panel found one liable for failing to catch unauthorized trades. The regulator found that Banc of America Securities should have alerted hedge fund Circle T Family of Funds to trades made by former Circle T staffer Ethan Kass without permission in 2005. The short ruling did not enumerate the panel’s reasons for finding in Circle T’s favor.
The panel ordered BofA to pay less than $1 million in compensatory damages and rejected Circle T’s claim for punitive damages. The hedge fund had sought $8.4 million in compensatory damages and $25.2 million in punitive damages.
Circle T general partner Seth Tobias celebrated the “unprecedented decision,” saying in a statement, “Although the amount of the award fell short of our expectations, this proves our assertion prime brokers are not totally immune from liability and do have responsibility to monitor clients’ accounts and act accordingly.”
BofA also claimed victory, tendentiously claiming in a statement, “the minimal amount of the award, less than 2% of what Circle T was seeking, clearly shows that the panel rejected its claims, and placed responsibility for the unauthorized trading where it belongs—with Circle T.”
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...