Hedge fund Two Sigma in settlement talks with US SEC, WSJ reports (updated)
19/09/2024 17:51
(Adds details from the report in paragraph 2, 3 and details
about the hedge fund in paragraph 5, 6)
Sept 19 (Reuters) - Hedge fund Two Sigma is likely to
have to pay as much as $100 million to resolve a U.S. Securities
and Exchange Commission probe into a trading scandal at the
firm, the Wall Street Journal reported on Thursday.
The U.S. hedge fund is likely to be held accountable for how
it oversaw an ex-employee at the center of the misconduct,
which led to hundreds of millions of dollars in unexplained
losses and profits, the report added citing people familiar with
the matter.
The researcher allegedly modified trading models without
authorization. Two Sigma and the regulator are in talks and the
outcome could be a lower payment for the firm, the people added.
The SEC and Two Sigma did not immediately respond to
Reuters' requests for comment.
Two Sigma co-founders John Overdeck and David Siegel decided
to step down as Chief Executive Officers in August.
The hedge fund, with $60 billion in assets under management,
disclosed in a regulatory filing last year that a rift between
its top managers poses governance challenges and a material risk
for the firm.
Both Overdeck and Siegel, who founded Two Sigma in 2001, are
to continue as co-chairmen.
(Reporting by Pritam Biswas in Bengaluru; Editing by Krishna
Chandra Eluri)
((Pritam.Biswas@thomsonreuters.com;))