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.


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Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

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