From Practice Exam III, VOL 2 Morning Q. 11 What is the code of compliance for being a market maker in a stock and helping with a secondary offering? Where in the standards does it say anything about this? What is with the five day rule? I’ve spent hours on ethics and have never come across a scenario like this…
From what I understand, there is no five day rule - you are not supposed to signal anything about having inside info on preparation to do an offering - a signal includes stoping market making activities. Hence, the proper course of action is to follow a passive market making approach.
pvalka Wrote: ------------------------------------------------------- > From Practice Exam III, VOL 2 Morning Q. 11 > > What is the code of compliance for being a market > maker in a stock and helping with a secondary > offering? Where in the standards does it say > anything about this? What is with the five day > rule? I’ve spent hours on ethics and have never > come across a scenario like this… post question please.
no 5 day rule, market maker needs to take contra side of unsolicited client trades