SEC Fines More Hedge Funds in Short-Selling Crackdown

With its second blitz against firms that violated an obscure short-selling rule, the SEC signals it means business on Rule 105.

For the second time in two years, a slew of hedge funds and other investment firms have been fined by the Securities and Exchange Commission for running afoul of a rule related to short-selling.

However, this time none of the hedge fund firms was among the very largest — a possible indication that well-heeled firms with extensive legal and compliance departments that can devote the needed time to monitor this sort of activity are heeding the SEC’s warnings.

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