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

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...