Hedge-fund firm D.E. Shaw Group was fined $75,000 for exceeding bullish position limits in the natural gas market by 80% during three trading days last October, according to a CME Group Inc. (CME) disciplinary notice released Thursday.
The firm's Plasma energy fund had a long position--a bet that prices would rise--of more than 1,800 contracts on the New York Mercantile Exchange in November 2013 natural gas futures on Oct. 25, 28 and 29 of last year, in excess of the 1,000-lot limit, the exchange said. The firm neither admitted nor denied the allegations as part of the settlement. A spokesman for D.E. Shaw Group declined comment.
The three trading days subject to the settlement were the final three trading days in the contract before expiry. Prices in natural gas futures were falling during the period in question.
The Wall Street Journal reported in February that the $650 million Plasma fund lost 28% in 2013. The firm's head of energy-trading strategy, Jeff Myers, announced his retirement from D.E. Shaw in January.
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