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As the SEC had previously indicated it was not interested in regulating hedge funds trading strategies, this would be a shift in focus and possibly provoked by New York State Attorney General Eliot Spitzers settlement against hedge fund Canary Capital Partners this past Wednesday (see MME 9/4/03). The case involves alleged late-trading with the hedge fund by four mutual fund companies:
"My guess is the SEC will shift its focus a little bit because they dont want to look like theyre two jumps behind Eliot Spitzer," John Coffee, a securities law professor at Columbia University Law School, told Reuters.