Hedge fund giant Two Sigma could pay up to $100 million to settle a U.S. Securities and Exchange Commission investigation into the firm's trading scandal. The New York company could be blamed for regulatory misconduct by a former employee who allegedly adjusted trading models without authorisation, resulting in hundreds of millions of dollars in unexplained losses and gains, according to people familiar with the matter. Two Sigma is still in talks with regulators that could result in lower payments, according to people familiar with the matter. A final settlement must be approved by the five-member committee. Spokespeople for the company and the SEC declined to comment.