SEC says brokers violated. Naked' short sale rule

Aug 12, 2009

Associated Press

Aug. 5, 2009, 3:26PM

WASHINGTON (AP) ? The Securities and Exchange Commission has charged two traders with violating new rules intended to limit a practice known as ?naked? short-selling.

The SEC says the two traders have agreed to settle the charges without admitting or denying guilt.

The agency says New York-based Stephen Hazan and Hazan Capital Management LLC have agreed to pay a penalty of $3 million to settle the charges, while Chicago-based TJM Proprietary Trading LLC agreed to a penalty of $541,000.

The two firms were charged with circumventing a rule that requires brokers to promptly produce shares in ?naked? short-selling transactions.

?Naked? short sales involve bets against a company's share price by investors who don't own the shares at the time of the sale.

Read More: Article Source

Recently Saved Homes

Houston 77005SPRING 77379 Cypress 77429HOUSTON 77007