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
Asset Management, including reopening the firm’s London office and hiring
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
Cohen Banned From Supervising Hedge Funds Until 2018 & Cohen
Builds Out Family Office, Eyeing Possible Return