CFTC Revokes SAC Capital’s Commodity Registrations

The United States Commodity Futures Trading Commission (CFTC) revoked the registrations of the two affiliates of SAC Capital. The revocation in connected to its conviction on insider trading charges last year.

CFTC ordered SAC Capital to stop CTA/CPO activities

According to the CFTC, the registration of SAC Capital Advisors LLC as Commodity Trading Advisors (CTA) and Commodity Pool Operator (CPA) is immediately revoked.

The registrations of SAC Capital Advisors LP as a CTA and CPO will be revoked effective December 31, 2015. The regulator said the CTA and CPO activities of the funds are immediately restricted in accordance with the previous order issued by the Securities and Exchange Commission (SEC).

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Furthermore, the CFTC said SAC Capital Management was also ordered to stop immediate in engaging in any activity that requires a registration as a CTA or CPO.

SAC Capital is subject to statutory disqualifications

According to the CFTC, SAC Capital and its affiliates are subject to statutory disqualifications of their registrations under the Commodity Exchange Act (CEA) based on their guilty pleas of wire fraud and securities fraud.

The regulator added that it also issued an opinion and order accepting the settlement proposal from SAC Capital’s affiliates.

SAC Capital changes name to Point72 Asset Management

SAC Capital pleaded guilty to the criminal insider-trading charges and agreed to pay $1.8 billion in total penalty. The hedge fund agreed to wind down some of its units and will no longer manage investments from outside investors.

Steven Cohen, the head of SAC Capital decided to open a family-office to manage his personal funds. Cohen’s family-office is called Point72 Asset Management, which is not required to register with U.S. regulators.

Last week, a federal judge sentenced SAC Capital’s former portfolio manager, Mathew Martoma to nine years in prison. He is one of the eight employees of the hedge fund already convicted of insider-trading charges.

In May, Michael Steinberg, another former portfolio manager of the hedge fund was sentenced to 3 ½ years in prison for insider trading.

H/T DealBreaker