A regulatory crackdown in South Korea last year saw hedge funds Segantii Capital Management and Point72 Asset Management fined along with proprietary trading firm Jane Street Group and other investment firms, according to a report by Bloomberg.
The report cites regulatory filings in revealing that Segantii, Jane Street and Regal Funds Management were all sanctioned last December, while Point72 Asset Management was fined in September over an uncovered short position caused by human error.
South Korea has been retroactively probing short-selling transactions by global banks since late 2023 to root out illegal use of the practice, going so far as to ban all short selling from November until next month.
South Korea’s Financial Supervisory Service (FSS) imposed penalties totalling KRW2bn on three global hedge funds in December without naming them, after they allegedly violated rules during block trades of SK Hynix shares in October 2019.
According to an FSS statement in December, one of the three funds conducted an alleged illegal trade involving naked short selling.
