As the fund does not employ leverage or derivatives for risk management, Exante intends to provide a two-way secondary market for the trading of fund shares.
The SEC publicly maintains that personal trading by fund managers is not widespread yet it resists efforts to make the results of its examinations of money managers available to the public.
This would allow traders and active investors to begin trading the fund from the long side for a change, taking advantage of short-term weakness rather than short-term strength as the bull market in FXI is restored.
The bosses of funds benefited either indirectly, because the funds were given more money to manage (and thus more fees), or directly, because they invested in the hedge fund that was trading against the mutual fund.
ECONOMIST: Everyone’s making money except the customers | The
The attorney general credited the SEC with a good response to the mutual fund trading scandal.
We did all we could to draw attention to the issue of pervasive illegal mutual fund trading.
FORBES: Early Warnings of Mutual Fund Illegalities (October 1, 2003 )
Illegal personal trading by mutual fund portfolio managers, traders and other senior investment personnel costs investors billions.
Special Offer: RMR Asia Pacific Real Estate (RAP) a closed-end fund trading at a 21% discount to NAV.
He added that he had seen a recent spike in exchange-traded-fund trading volume.
Some firms also are scoring sizable profits by expanding into other, often-lucrative areas, including real estate, hedge-fund trading and asset management.
The reform bill does include significant, if watered-down, restrictions on proprietary trading and hedge fund investments by banks, practices blamed for exacerbating the 2008 financial crisis.
Regulators in England, as well as in the U.S., are concerned that with the increasing speed and complexity of hedge fund trading, the system will be unable to keep up.
The SEC should also push harder to lower fund fees, improve disclosure and insist on overseeing hedge funds, the customers at the root of the mutual fund trading scandal, Bogle said.
If you choose a closed-end fund trading at a discount to its net asset value, you might also get some capital appreciation, says Maury Fertig, chief investment officer at Relative Value Partners LLC, Northbrook, Ill.
For the third time in six months, the U.S. Securities and Exchange Commission has pushed off proposals to enhance exchange-traded fund trading by the New York Stock Exchange and Nasdaq Stock Market.
The exchange's decision to increase the amount of assets brokers have to keep in reserve against the revolving loans they routinely use to fund trading - known as "badla" - triggered a sharp fall in the market.
In rejecting broader liability the court majority also rejected the position of lawyers for the federal government, who argued that the three units of mutual fund manager Janus Capital were so closely intertwined that they all should be subject to suit over alleged misstatements about mutual fund trading.
FORBES: Supreme Court Rejects Broader Liability In Janus Case
By opposing disclosure of the risks to investors personal trading by portfolio managers poses, as well as disclosure of portfolio manager personal trading records and, when all else fails, invoking the attorney-client privilege to prevent investors from learning of illegal personal trading, the mutual fund industry has been able to maintain the illusion that such trading is rare and investors are not being harmed.
FORBES: Letter to Editor of BusinessWeek Re: Mutual Fund Personal Trading ( July 1, 1998)
Late trading is the illegal practice of buying or selling mutual-fund shares at the trading day's price after the market has closed.
Prosecutors have called the case the "largest hedge fund insider trading case in history".
Personal trading violations by mutual fund portfolio managers and other money managers occur daily.
Central Europe and Russia Fund is trading down about 2% on the day Tuesday.
One way to do that is to outsource proprietary trading to a hedge fund.
Another example of important records available to the SEC but not to investors is mutual fund personal trading violations.
The iShares FTSE Xinhua China 25 (FXI) exchange traded fund is trading below its 50 and 200 day moving averages.
For now, the iShares MSCI Brazil (EWZ) exchange traded fund is trading below its 50 and 100 day simple moving averages.
Driving the reduction in hedge fund short trading is the escalating cost of selling stock short in the last few years.
"Our action today is one of several that will make very clear the SEC is targeting hedge fund insider trading as a top priority, " Cox said.
"Our action today is one of several that will make very clear the SEC is targeting hedge fund insider trading as a top priority, " Cox said in a statement.
The Commission should unambiguously state that whomever is responsible for monitoring personal trading within a mutual fund company has a paramount duty to protect the shareholders of the funds.
FORBES: Early Warnings of Mutual Fund Illegalities (October 1, 2003 )
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