SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.

LITIGATION RELEASE NO. 15038 / September 12, 1996

SECURITIES AND EXCHANGE COMMISSION v. TUDOR INVESTMENT
CORPORATION, (United States District Court for the District of
Columbia) (D.D.C. 96 CV 02119)

     The Securities and Exchange Commission today announced the
filing of a Complaint in the United States District Court for the
District of Columbia against Tudor Investment Corporation
("Tudor").  The Commission's Complaint alleges that Tudor
violated the short sale rule, which permits short sales only
under certain circumstances.  Simultaneously with the filing of
the action, Tudor consented, without admitting or denying the
allegations of the Complaint, to the entry of a final judgment. 
The proposed Final Judgment requires that Tudor pay $800,000 to
the United States as a civil penalty under the Securities
Enforcement Remedies and Penny Stock Reform Act of 1990.  As part
of the settlement of this matter, Tudor simultaneously consented
to the issuance by the Commission of an Order requiring Tudor to
cease and desist from violations of the short sale rule.  In the
Matter of Tudor Investment Corporation, Administrative Proceeding
File No. 3-9077, (September 12, 1996).

     The Commission's Complaint alleges that Tudor is the trading
advisor for a number of investment funds.  The Complaint further
alleges that on March 15 and 16, 1994, Tudor sold short over
1,743,500 shares of 27 of the 30 stocks listed on the New York
Stock Exchange which comprised the Dow Jones Industrial Average
(the "Dow Stocks") in violation of the short sale rule, Section
10(a) of the Exchange Act and Rule 10a-1 thereunder.  Rule 10a-1
(the "short sale rule") provides that short sales (i.e., sales of
a security that the seller does not own) of exchange-listed
securities may be effected only at a price above the price at
which the immediately preceding sale was effected ("plus tick"),
or at a price equal to the last sale if the last preceding
transaction at a different price was a lower price ("zero-plus
tick"), when compared to the reported last sale price.  The
holder of a particular security must aggregate its long and short
positions together pursuant to Exchange Act Rule 3b-3 to
determine whether it has a net short position in a particular
security and therefore is obligated to comply with the short sale
rule.

     The Complaint alleges that on March 15 and 16, 1994, Tudor
failed to aggregate its long and short positions in the 27 Dow
stocks when such aggregation would have shown that it had a net
short position in these stocks, and directed the sales of such
securities without regard to compliance with the short sale rule.
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As a result, 174 short sale transactions by Tudor on March 15 and
16, 1994 in the 27 Dow stocks with a market value of over $98
million were not effectuated on either a plus tick or a zero-plus
tick.  These sales were a significant factor in a 16 point drop
in the DJIA, which produced an approximate $1.5 million gain for
Tudor in its short position.  Tudor did not attempt to realize
such gain and closed out its short position over a period of
several months beginning in May of 1994, ultimately incurring a
loss of approximately $3,300,000.