Hi all, Apols if this is already on the forum, I couldn’t find quite what I was after when I searched. This is my question: What is your role, and what are the personal account trading rules at your firm? I’d like to build up a PA trading history, but the place where I work requires onerous pre-trade clearance (approval from two different departments) and a ‘minimum holding period.’ Is this typical? I’m in Ops on the buy-side, not equity research, trading, PM, etc. Thanks for taking the time to respond
Im in research When mkt cap is > 5 bil - we can do whatever we want and don’t need clearance When cap < 5 bil - we need to get our trading desk to stamp approval sheet - just to make sure we arent front running. If we hold the name in our accounts (im on buyside), then I have to hold it for 6 weeks before I can sell it. If it is a stock that I recommended or was partner on…I cant sell until firm sells first.
What if it was $5 billion last week and $5 million this week?
Then we have to get our sheet stamped before we can sell out of position…
thanks guys, appreciate the info. what frustrates the crap out of me is that my firm doesn’t transact in equity markets. frustrating for me!
That is a bit strict. But these days firms like to be overly strict than lean on policies. I’m in ops on the buyside likewise. I give my sheet to the manager for approval, then it sits near trading for 3 days, then it goes to compliance. At any point my request can be shot down, and it really p!sses me off when say I have an ETF product I wish to purchase, but ONE trade occurs in ONE account to which compliance vetos. Mutual funds require no preclearance, only monthly discosure reports of what one bought.