A trader who traded on a US stock exchange before he was fired from his job at Piglin Trade Partners says the trade was an unwise move.
Scott Breen of the hedge fund Elliott Management says he sold $2 million worth of shares of his firm’s Dow Jones industrial average stock on the NYSE and lost $5.7 million.
He says the losses will be absorbed into his hedge fund’s overall trading expenses.
The trades, which were disclosed as part of a filing with the Securities and Exchange Commission, are among the latest in a string of trades by hedge funds and traders that have drawn scrutiny for their potential conflicts of interest.
They are among more than a dozen such transactions that the SEC says have raised concerns about the potential for insider trading.
In a statement to CNBC, Elliott Management said that Breen had sold his shares of the Dow Jones stock for $2,534 and had not been compensated for the trade.
Breen declined to comment further.