Archegos Capital’s implosions have drawn the attention of the Securities and Exchange Commission.
On the evening of March 29, the Securities and Exchange Commission (SEC) said it was closely monitoring the situation, Reuters reported. The move comes after a hedge fund defaulted on margin calls, prompting leading banks on Monday to say they were facing big losses.
The hedge fund is Bill Hwang’s New York-based Archegos Capital Management, according to people familiar with the matter.
When asked about Archegos Capital’s losses, an SEC spokesman responded that the agency has been in communication with market participants since last week.