Friday, 26 December 2014
Last updated 2 days ago
Nov 13 2006 | 5:28pm ET
Hedge funds and prime brokers got a stern talking-to from regulators today, and a warning to clean up their acts—or else.
At a hedge fund conference in New York, Securities and Exchange Commission enforcement chief Linda Thomsen said the agency will ratchet up the pressure on illegal trading and abusing clients’ trust with a flurry of lawsuits. “I expect to see activity in connection with both,” she said. “These days, the money is in hedge funds, so the potential for securities law violations is there because there is so much money there.”
Meanwhile, the New York Stock Exchange’s lead enforcer took aim at hedge funds’ potential accomplices, the giant investment banks that serve as prime brokers.
Susan Merrill told conferees that the Big Board expects banks that are part of an underwriting syndicate for secondary stock offerings will detect hedge funds selling a stock short, with plans to cover the short sale with shares to be purchased in the secondary offering.
“We do expect member firms to put that information together,” Merrill said. “There will be actions related to that if that practice doesn’t get cleaned up.”
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.