SEC v. G-2 Trading LLC (rule 105 offering shorts, 2013)

Settled

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In September 2013 the SEC instituted proceedings against G-2 Trading LLC, alleging three breaches of Rule 105 of Regulation M between 2009 and 2012. On May 22, 2014 the Commission accepted the firm's offer of settlement and ordered it to cease and desist, pay $841 in disgorgement with $36.45 interest and a $75,000 penalty.

The record

What was ordered

Civil penalty

$75k

Disgorgement

$841

Prejudgment interest

$36

Total relief

$75.9k

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Securities and Exchange Commission announced this matter on September 16, 2013 as release 34-70414. The respondents named are G-2 Trading LLC (0 individuals, 1 entity).

The document is an order instituting proceedings, not a settlement: it alleges that on three occasions between November 2009 and August 2012 the broker-dealer bought offered shares from an underwriter or participating broker after selling the same stock short in the restricted period, and sets the matter for hearing. The allegations are unproven in this document.

This library tags the matter as rule 105 offering shorts, based on the conduct the regulator describes. Each tag links to a page explaining how that technique works, what statute it engages, and what penalties comparable actions have attracted. The tagging is ours, not the regulator's: agencies charge statutory provisions, not technique names.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

Outcome. The Commission's Order Making Findings and Imposing Cease-and-Desist Order of May 22, 2014 (File No. 3-15495) responds to the September 2013 proceeding and was entered on G-2's Offer of Settlement, without admitting or denying the findings. It orders the firm to cease and desist from the Rule 105 violations and to pay, within 14 days, disgorgement of $841, prejudgment interest of $36.45 and a civil penalty of $75,000. The tiny disgorgement reflects the order's own calculation of the gain; we did not review its findings beyond the sanctions. This library also holds a separate record for the 2014 settled order, so this record and that one describe the same matter.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Rule 105 offering shorts — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2013-09-16 Administrative proceeding instituted (cease-and-desist)
2. 2014-05-22 Order making findings and imposing cease-and-desist order on settlement

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC order
• SEC order, G-2 Trading LLC, May 22, 2014 (34-72231)

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Same matter

The library links these 2 records because they appear to concern one matter: the same lead defendant, an overlapping technique tag and close filing dates, or a shared court docket or a release that cites the other. Records are listed by date filed.

This grouping is the library's, made by matching names, techniques, dates and citations when the site is built. It is not the regulator's or a court's determination that the records are one case, and it errs towards missing a link rather than making a false one.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 20, 2026. submit a correction.