In the Matter of Horseman Capital Management, L.P., Adm. Proc. File No. 3-14202 (Jan. 24, 2011) is a proceeding naming as a Respondent Horseman Capital, a London based partnership which manages four funds, two of which are in the U.S. The firm is registered with the FSA in the U.K. According to the Order, from the middle of 2007 through the summer of 2008 Respondent maintained short positions in the stocks of several financial institutions including Merrill Lynch. On July 29, 2008 Merrill shares were sold in a follow-on offering. During the restricted period Respondent increased its short position in Merrill by 75,000 shares. This violated Rule 105 of Reg M which generally prohibits the purchase of securities in an offering if that person sold short the security during the restricted period. To resolve the proceeding Respondent consented to the entry of an order directing that it cease and desist from committing or causing any violations and any future violations of Rule 105 of Regulation M. The order also directed Respondent to pay disgorgement of $1,295,138 along with prejudgment interest and to pay a civil penalty of $65,000.