Steven Cohen Barred From Commodities Until 2018

Another US regulator adds to the restrictions faced by the hedge fund manager following insider-trading charges.

Already prohibited from supervising hedge funds, Steven Cohen is now also facing a two-year suspension from commodities trading.

The US Commodity Futures Trading Commission (CFTC) has restricted the hedge fund manager’s trading registration, the regulator announced Tuesday.

In settlement with the CFTC, Cohen has agreed not to engage in any trading that falls under its jurisdiction until at least December 31, 2017, the end date of the Securities and Exchange Commission (SEC) ban prohibiting Cohen from managing outside money.

In January, Cohen settled SEC charges that he failed to supervise a former portfolio manager who engaged in insider trading while employed at Cohen’s firm, SAC Capital.

According to the SEC, Cohen “ignored red flags that should have caused him to take prompt action.” Cohen has neither admitted nor denied these charges.

Though currently barred from external capital, Cohen has continued to build up his hedge fund-turned-family office, Point72 Asset Management, including reopening the firm’s London office and hiring new staff.

Cohen has also launched a new hedge fund, Stamford Harbor Capital. Though Cohen owns the fund, he will “not act in a supervisory capacity,” according to documents filed with the SEC—making it possible for the hedge fund to begin accepting outside capital before the end of Cohen’s ban.

However, a Stamford Harbor spokesperson told the Wall Street Journal the firm will not manage outside money before January 2018.

Related: Steven Cohen Banned From Supervising Hedge Funds Until 2018 & Cohen Builds Out Family Office, Eyeing Possible Return

| Amy.Whyte@strategic-i.com | 646-308-2775