Â鶹´«Ã½

Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
Â鶹´«Ã½
Leading the Way

Global Â鶹´«Ã½ Finance News and Commentary
≔ Menu
Â鶹´«Ã½
Leading the Way

Global Â鶹´«Ã½ Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. HomeRegulation news
  2. SEC charges FiveT Capital with violation of trading rule
Regulation news

SEC charges FiveT Capital with violation of trading rule


28 November 2024 US
Reporter: Daniel Tison

Generic business image for news article
Image: medienvirus/stock.adobe.com
The US Â鶹´«Ã½ and Exchange Commission (SEC) has charged FiveT Capital, a Switzerland-based investment adviser, with violating a trading rule.

The SEC's order found that FiveT violated Rule 105 of Regulation M of the Â鶹´«Ã½ Exchange Act of 1934, which prohibits the short selling of an equity security during a restricted period (generally five business days) and then purchasing the same security in the offering.

Rule 105 applies regardless of the trader's intent, and is designed to prevent potentially manipulative short selling before the pricing of covered secondary offerings of securities.

The SEC's investigation, conducted by Geoffrey Gettinger, found that FiveT participated in 14 covered offerings of securities between July and December 2020, after it had sold short the same securities during the restricted period.

Without admitting or denying the findings, FiveT agreed to desist from this practice and to pay a disgorgement of US$1,593,294.73, prejudgment interest of US$357,199.05, and a civil money penalty of US$805,000.
← Previous regulation article

FSCA licences Strate as trade repository
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Â鶹´«Ã½ Finance Times
Advertisement
Subscribe today
Knowledge base

Explore our extensive directory to find all the essential contacts you need

Visit our directory →

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →