Two Directors Are Quitting The ASX After Their Hedge Fund Was Fined For Breaking Short-Selling Rules

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Shane Finemore and Russell Aboud are reportedly resigning from the board of the Australian Securities Exchange this morning after their hedge fund was fined by US regulators.

The former UBS bankers’ $1.5 billion hedge fund Manikay has been slapped with a AU$2.83 million infringement for improperly shorting Citigroup shares in 2009.

The fine includes all all the profit the hedge fund made on the deal, which breached rules which place a timeframe on re-purchasing shares after they are shorted.

The fund one was of 23 caught up in a crackdown by US markets regulator the Securities And Exchange Commission.

Aboud is UBS’s former head of European equities. He joined the ASX in 2005. Finemore is a former member of the UBS board who joined the ASX in 2007.

A spokesperson told The Australian the chairman had been informed the two would resign this morning, and the company — which operates Australia’s major markets exchange — would issue a statement after it is official.

Read more here.


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