U.S. SEC Millennium Short Sales

On 31 October, SEC fined Millennium $300k for short sales pre-offerings.

  • Millennium Management LLC agreed to pay over $630,000 to settle SEC charges.

Alleged Violations

  • Company violated the anti-manipulation provisions of the federal securities laws.
  • Firm shorted US stocks in companies which were planning for follow-on offerings.
  • After shorting, the firm then illegally bought the shares in the follow-on offering.
  • By illegally purchasing shares in follow-on offerings, company made $286k profit.
  • Accounts participated in public offerings despite other firm accounts being short.

Rule 105 Violations

  • SEC Rule 105 prohibits short selling an equity security during a restricted period.
  • Restricted period generally for five business days before covered public offerings.
  • Rule bans subsequent purchase of same security as shorted, through an offering.


  • Pay disgorgement $286k, interest of $51k and penalty of $300k for total of $637k.