D.E. Shaw Fined For Shorting Corn, Soy Beans

Feb 24 2012 | 4:34am ET

D.E. Shaw Group has been hit with a small fine for violating position limits in corn and soy bean futures.

The hedge fund settled the allegations leveled by the Commodity Futures Trading Commission, the regulator said. D.E. Shaw will pay $140,000 for the violations, which occurred in April and June of 2010.

New York-based D.E. Shaw, which manages $23 billion, did not admit or deny any wrongdoing.

According to the CFTC, in April 2010 the hedge fund held a short position that exceeded by more than 50% the monthly trading limit on soy bean contracts. Two months later, it exceeded trading limits on corn by a much more modest margin.

The CFTC acknowledged that D.E. Shaw "unintentionally" exceeded the limits and moved the following day to reduce its position size.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of