Further SEC Sanctions Indicate Continued Attention to Rule 105 Short Selling Violations
On September 16, 2014, the Securities and Exchange Commission (“SEC”) announced that it charged 19 firms and an individual trader with violations of Rule 105 of Regulation M under the Securities Exchange Act of 1934 (“Rule 105”). This round of sanctions follows the largest Rule 105 sanction ($7.2 million) announced in March of this year…