ASX Laments Hedge Fund Short-Sale Scandal

Sep 26 2013 | 10:24am ET

The Australian Securities Exchange said that the resignation of two U.S. hedge fund managers from its board was "unfortunate."

Manikay Partners founders Russell Aboud and Shane Finemore quit last week, after the U.S. Securities and Exchange Commission fined their hedge fund and 22 others for violating a rule that bars "shorting into the deal"—participating in a stock offering within five days of having shorted the stock on offer. New York-based Manikay paid $2.65 million to settle the allegations, which do not require malicious intent.

ASX Chairman Rick Holliday-Smith said he was made aware of the potential SEC action weeks before it became public, but accepted legal advice not to act. "It was clear that the matter could not be properly considered by the board until the SEC process was understood and the confidentiality issues were resolved," Holliday-Smith said yesterday. "Clearly, these events are unfortunate for all concerned."

Holliday-Smith said that Aboud and Finemore offered to resign immediately after the SEC announced the fines.

"They did not want any reputational issues for the ASX to arise as a consequence of these matters," Holliday-Smith said.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.