Welcome to CanadianHedgeWatch.com
Wednesday, February 28, 2024

SEC orders hedge funds to turn over data

Date: Thursday, September 25, 2008
Author: Financial Times

New Page 1

America’s SEC ordered more than two dozen hedge funds to turn over trading information as it ramps up its investigation into whether traders were spreading rumours to manipulate shares, reports the WSJ. The SEC order, dated Sept 22, identifies six financial institutions the SEC believes may have been subject to such manipulation. The order is akin to a subpoena and requires information to be handed over with a sworn statement attesting to its accuracy. It seeks a wide range of trading data and emails over a period of three weeks involving AIG, Goldman Sachs, Lehman Brothers, Morgan Stanley, Washington Mutual and Merrill Lynch. The broad investigation, announced Friday, is part of an effort to crack down on rumour mongering and abusive short selling, which some believe contributed to the collapse of Bear Stearns. The SEC also is investigating rumours or other information received by the funds and how it was communicated, and is requiring the funds to turn over information if they forwarded a message to anyone.