Given this is a mock question, I won’t post it, but for anyone who has access, can you please comment on question 5?
I am having a problem recognising how II(A) material non-public information applies here exactly. I get that the hedge fund should not be allowed to trade after market close, but where exactly does material non-public info come in? How is Charlie providing mnp info to the fund, he may be “inducing them to trade” by providing them access, but what mnp info do they get? Markets are closed, as I read the question, so they are not shifting the market, they are just submitting their orders out of market hours or am I misunderstanding the mechanics?