SEC v. Candlestick Capital Management LP et al. (rule 105 offering shorts, 2023)

Settled

Machine-extracted, pending human review. The structured fields on this page were parsed automatically from the regulator's own release, linked below. Read the primary document before relying on any figure here, and tell us if something is wrong.

In 2023, the Securities and Exchange Commission settled an action with Candlestick Capital Management LP et al., alleging conduct this library classifies as rule 105 offering shorts. The release records a civil penalty of $810,000, disgorgement of $1.6 million, prejudgment interest of $92,586.

The record

What was ordered

Civil penalty

$810k

Disgorgement

$1.6m

Prejudgment interest

$92.6k

Total relief

$2.5m

Alleged gain

$1.6m

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 filed this matter on February 17, 2023; the release announcing it is dated February 21, 2023 (release LR-25642). The respondents named are Candlestick Capital Management LP et al. (0 individuals, 1 entity). The action was brought in the U.S. District Court, District of Connecticut.

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.

The relief recorded in our data is a civil monetary penalty of $810,000, disgorgement of $1.6 million, prejudgment interest of $92,586. Penalty and disgorgement are distinct: disgorgement returns the gain, while the penalty is punitive. We store them separately so that aggregate figures across the library are not double-counted.

Note on the figures: The penalty is Candlestick Capital's; the disgorgement ($1,565,305 and $55,092) and interest ($89,439 and $3,147) are those of two fund relief defendants. Subject to court approval when announced.

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.

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. 2023-02-17 Settled complaint filed (D. Conn., No. 3:23-cv-00206)
2. 2023-02-21 Litigation release published

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 litigation release

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.