On 20 May 2024, SEC reported settlment with Kershner for Rule 105 fails. SEC settled charges against Kershner Trading Americas, LLC (Kershner), for violating SEC short selling rule, when it purchased stock in 23 public offerings after shorting stock. This was during a time period when the SEC rule prohibited those purchases. Allegations The SEC’s…
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The Grey Area of US SEC Rule 13f-2: Short Position Reporting
By now, we all know the ins and outs of US SEC Rule 13f-2: What: short position reporting for institutional investment managers Who: institutional investment managers Read the full article.
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20 May 2024 – U.S. SEC Fines for Illegal Short Selling
U.S. SEC Fines for Illegal Short Selling
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U.S. – FINRA Fines M1 Finance for Short Selling Failures
On 6 May 2024, FINRA fined M1 Finance $400k for short selling failures. FINRA accepted the offer of a Letter of Acceptance, Waiver, and Consent (AWC) from M1 Finance for millions of violations of Regulation SHO by marking trades long. Failed to establish and maintain a supervisory system designed to achieve compliance with Reg SHO's…
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S Korea – FSS Findings from Probe into Short Selling
On 7 May 2024, S Korea's securities regulator, the FSS uncovered an alleged $156m worth of illegal short selling activity by nine unnamed investment banks. Background report claims that the banks violated mostly procedural rules while collectively short selling 164 stocks, activity at an additional five banks remains under investigation two of the nine banks…
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S Korea – FSS Uncovers Illegal Short Selling
On 6 May 2024, SK FSS said it has discovered illegal short selling worth KRW 211.2bn in 9 out of 14 global IBs since the launch of its special investigation team in November 2023. Major allegations include insufficient procedure for return of stocks provided as loan/collateral; submission of short selling before loan confirmation; insufficient balance…
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