Caxton Associates (Usa) Llc

Allegations: IN MAY OF 2014, CAXTON INTERNATION LIMITED SUBSCRIBED FOR A TOTAL OF 16,000,000 SHARES OF A SECONDARY OFFERING OF THE NATOINAL BANK OF GREECE SA, A GREEK LISTED ISSUER ("NBG"). THE TRADE DATE FOR THIS TRANSACTION WAS MAY 5, 2014, WITH A SETTLEMENT DATE OF MAY 19, 2014, AND THE NBG SHARES STARTED TRADING IN THE MARKET ON MAY 20, 2014. SUBSEQUENT TO MAY 5, 2014, CAXTON INTERNATIONAL LIMITED SOLD SOME OF THE LONG POSITION IN THE NBG SHARES, WITH A TRADE DATE OF MAY 15, 2014, ONE DAY BEFORE THE ATHEX BOARD APPROVED AND DETERMINED THAT THE NEW NBG SHARES WOULD BE ADMITTED TO TRADING ON MAY 20, 2014. THE TRADES SETTLED APPROPRIATELY AS REQUIRED. THE HCMC ALLEGES THAT THE SALE TRANSACTION AMOUNTED TO AN UNCOVERED SHORT SALE IN BREACH OF THE EU SSR (HCMC DECISION NO 9/792/20.07.2018). ON APRIL 30 2014, CAXTON INTERNATIONAL LIMITED SUBSCRIBED FOR A TOTAL OF 16,000,000 SHARES OF THE STOCK CAPITAL INCREASE OF THE BANK EUROBANK ERGASIAS S.A. ("EUROBANK"). CAXTON INTERNATIONAL LTD WAS ASSURED THAT SETTLEMENT OF THE TRANSACTION WOULD OCCUR ON MAY 8, 2014 AND THAT THE NEW SHARES WOULD BE AVAILABLE TO CAXTON INTERNATIONAL LTD ON MAY 9, 2014. SUBSEQUENT TO THE SUBSCRIPTION ORDER, CAXTON INTERNATIONAL LTD SOLD SOME OF ITS LONG POSITION IN THE EUROBANK SHARES WITH A TRADE DATE OF MAY 6, 2014 AND A SETTLEMENT OF MAY 9, 2014. THE SETTLEMENT OF THE SALE SHARES WAS MADE WITH THE NEW SHARES RECEIVED FROM THE SCI ON MAY 8, 2014 AND THE TRADES SETTLED APPROPRIATELY AS REQUIRED. THE HCMC ALLEGES IN THE NOVEMBER 6, 2018, FILING THAT THE SALE TRANSACTION AMOUNTED TO AN UNCOVERED SHORT SALE IN BREACH OF THE EU SSR (HCMC DECISION NO 13/801/2017). IN MARCH 2014, CAXTON INTERNATIONAL LIMITED SUBSCRIBED FOR A TOTAL OF 5,000,000 SHARES OF THE STOCK CAPITAL RAISE OF THE BANK ALPHA BANK S.A. ("ALPHA BANK"). CAXTON INTERNATIONAL PAID FOR THE SHARES ON MARCH 25, 2014 AND RECORDED THE PURCHASE IN RECORDKEEPING SYSTEMS. ON MARCH 26 AND 28, 2014 CAXTON INITIATED TRANSACTIONS DESIGNED TO REDUCE THE PREVIOUSLY PURCHASED SHARES BY 727,273 SHARES AND 2,000,000 SHARES, RESPECTIVELY. THE PURCHASED SHARES FROM THE CAPITAL RAISE HAD AN EXTENDED SETTLEMENT DATE OF ON OR ABOUT APRIL 4, 2014. THIS RESULTED IN A MISMATCH OF TIMING IN WHICH THE SALES OF SHARES SETTLED PRIOR TO THOSE PURCHASED IN THE CAPITAL RAISE WOULD SETTLE. UPON LEARNING OF THIS, CAXTON, ALONG WITH ITS PRIME BROKER SOUGHT TO OBTAIN ADDITIONAL SHARES OF ALPHA BANK TO SETTLE THE SHARES THAT WERE SOLD. THE HCMC ALLEGES THAT THE SALE TRANSACTIONS AMOUNTED TO UNCOVERED SHORT SALES IN BREACH OF THE EU SSR (HCMC DECISION NO 10/835/15.01.2019) Status: On Appeal Sanction Detail: THE FIRM HAS APPEALED THE NBG DECISION, THE EUROBANK DECISION AND THE ALPHA BANK DECISION. THE ATHENS ADMINISTRATIVE COURT OF APPEAL ISSUED DECISION NO 3705/2022, WHICH REJECTED THE NBG APPEAL AND IMPOSED TO CAXTON INTERNATION LIMITED A MONENTARY FINE OF EUR 15,000 PLUS COURT FEES (341 EUR) AND DECISION NO 2560/2023, WHICH REJECTED THE ALPHA BANK APPEAL AND IMPOSED TO CAXTON INTERNATION LIMITED A MONENTARY FINE OF EUR 53,600 PLUS COURT FEES (341 EUR). Summary: THE FIRM IS PENDING THE DECISIONS OF THE ATHENS ADMINISTRATIVE COURT OF APPEAL FOR THE EUROBANK APPEAL AND THE FIRM IS ALSO WAITING FOR THE DETERMINATION OF THE DATE OF THE HEARING.