Just curious if all money management firms have restrictions on personal trading? In other words, if I work in the fixed income space, am I restricted from trading equity options…what if someone works exclusively in the emerging market space, can they trade (without restrictions) in the US markets? Thanks
i interviewed at a place that didnt even let their back office employers trade in their personal accounts. I didnt accept their offer.
Many times personal trading requires a 407? letter meaning your broker will forward all trade confirmations and statements to compliance. Also pre clearance is required in some places prior to buying securities. Some of these requiresments are NASD requirements.
My firm requires advance approval for all equity trades, and there’s a 60-day holding period required when employees purchase our own funds (to make it clear to clients that we’re not shafting them with market-timing trades). No options or futures trading. Pretty much anything goes with open-ended mutual funds that aren’t managed by us. As KJH notes, the firm gets copies of all broker confirms. Serious problems for anyone who violates the rules. We’re probably on the stricter end of the spectrum, but I think most places have rules like that.
“Trading” (as opposed to investing) when you’re working in a money management firm just gets you into trouble even if you think the rules don’t forbid it. Don’t you get enough trading in your job?
Our firm requires written permissions on equity trades involving the stocks the firm holds. After the permission is granted, the trade must be executed within 48 hours. Quarterly brokerage statement needs to be submitted But non-firm holdings can be traded as wildly as one wants!
I can trade anything that is not on the restricted list. Basically…I have my interactive brokers acct open all day and use my quotes at work to day trade. As long as what I am trading isnt in a client acct…i am good. Pretty relaxed here about that stuff
Fixed income firm: – 60 day holding period for all stocks & funds – no restrictions on commodities, currencies, S&P futures, etc. – restricted list – report all equity transactions to firm compliance
RIA: report quarterly holdings and mutual fund/etf trades. Pre-clearance on individual securities.
WhitecollarRedneck Wrote: ------------------------------------------------------- > My firm requires advance approval for all equity > trades, and there’s a 60-day holding period > required when employees purchase our own funds (to > make it clear to clients that we’re not shafting > them with market-timing trades). No options or > futures trading. Pretty much anything goes with > open-ended mutual funds that aren’t managed by us. > As KJH notes, the firm gets copies of all broker > confirms. Serious problems for anyone who violates > the rules. We’re probably on the stricter end of > the spectrum, but I think most places have rules > like that. I thought it was a good sign if you owned your company’s MF?? i read somewhere (either barrons or WSJ) that when a PM invests in his/her own fund, the performance tends to be better. what MF company wants their employees buying into their competitors funds? from what I understand, market-timing trades would be if you wanted to buy into the individual stocks depending on what your fund was buying into. unless i missed your point?
You missed his point.
errrrr. maybe. but i’m not going to think about it. i’m beat. this week has been killing me. i need some vino. adesso.
Have yourself a few jager-bombs on me.
jbisback Wrote: ------------------------------------------------------- > I can trade anything that is not on the restricted > list. Basically…I have my interactive brokers > acct open all day and use my quotes at work to day > trade. As long as what I am trading isnt in a > client acct…i am good. Pretty relaxed here about > that stuff But that’s exactly the problem - what are you focused on if you are day-trading your own account?
It is a reason to leave a firm if they do not allow you or place restrictions on your PA. I frontrun most of our orders on illiquid stocks. If you are not on the inside, you are outside.