What does this mean?
this is probably talking about when firms are in touch with material information about a stock/company? (ie… a firm with inv. banking deal with a company) In cases like this, the firm (if they make a market in the stock) should not go out to other parties to solicit them to trade in the stock or take an active position themselves. If they get an order for the stock, unsolicited, from an outside firm, they may accept it… so if someone calls in an order to sell stock, you can take the other side (contra side), since you’re just making a market and not using any information you may have to compel them to trade.