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

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note