Monday, December 19, 2011

SEC Charges Options Trader for Illegal Short Selling Tactics

An options trader in the Chicago area has been charged by the SEC with violating short selling restrictions when he failed to locate and deliver the shares involved in short sales to broker-dealers and their institutional customers. He has agreed to pay more than $2 million to settle the SEC’s charges.

George S. Canellos, Director of the SEC's New York Regional Office said, “[he] avoided the cost of borrowing shares while engaging in complex short selling transactions, thus earning significant profits with minimal risk and gaining an advantage over legitimate participants in the market. We’ll continue aggressively to pursue and punish abusive short sellers who attempt to circumvent regulatory requirements to make more money.”


SEC Charges Options Trader for Illegal Short Selling Tactics
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