was a question: to prevent front-running trading from employees 5 day before no trading, or quaterly random employees give list of trades, or smth else?? tnx!
I feel 5 days beofre without trading was the best answer…
ditto
I had to guess this one. I was unsure about the ‘5’ days… 5 days seemed a little too questionable. Why not 1 week or 1 month? I picked get permission for any trade about $5000. Thus, as most banks need pre-trade clearance… I thought it may be fair and any for trade with a relatively ‘material’ amount.
Etienne Wrote: ------------------------------------------------------- > ditto ditto
Think I got this one wrong.
I thought about the five days for a very long time but I didnt go with it, the statement didnt really make sense it said 5 days prior to clients trade, who the heck knows when the clients are going to trade…? and where did they come up with 5 days, where does it say that anywhere?
I remember this question is freaking tricky, who remember what was asked?
i picked 5 days.
s23dino Wrote: ------------------------------------------------------- > I thought about the five days for a very long time > but I didnt go with it, the statement didnt really > make sense it said 5 days prior to clients trade, > who the heck knows when the clients are going to > trade…? and where did they come up with 5 days, > where does it say that anywhere? well you should know if you are going to buy something for your clients
ifi have an arrangement with the vendor who provides data which helps me in investment process then do I have to disclose the arrange ment to my employer or the client or to both of them? secondly can i accept a gift from the vendor?
Another trick question from CFAI. I dont know the right answer but it was definitely not the 5 days. Think of it logically, If an employee has purchased a stock today and if tomorrow he needs to place an order for the same stock for a client, does he have to wait for another 4 days before he can buy for clients?? How can he avoid this situation… He did not front run the stcok as he was not aware that a client was going to but the stcok!!!
i voted 5 days prior, but after thinking about this again, i am of two minds with 5000k - but still leaning towards 5 days
i remember it’s not the usual way, you need to see if it was most likely / least likely, anyone remember?
5 days
Agreed on the 5 days. Checking trades would be more appropriate if all personnel had to submit duplicate confirmations, not just a random sample.
buying it before your client is frontrunning. at my firm we have a 2 week rule. and yes many times that means people don’t buy things for their clients for 2 weeks because they wanted to buy it for their own account first.
there is no minimum trade $ value policy - companies do not do this and retirement account rule does not exist anywhere either. 5 days is the only one that made sense
oskigo Wrote: ------------------------------------------------------- > s23dino Wrote: > -------------------------------------------------- > ----- > > I thought about the five days for a very long > time > > but I didnt go with it, the statement didnt > really > > make sense it said 5 days prior to clients > trade, > > who the heck knows when the clients are going > to > > trade…? and where did they come up with 5 > days, > > where does it say that anywhere? > > > well you should know if you are going to buy > something for your clients Why would you wait 5 days just so you could say that you did not trade 5 days prior (why wouldnt you just buy it now)? 5 day thing is more aplicable to when putting out recommendations, you have to wait for that. And it didnt say anything about discretionary. What was wrong with the duplicate trade confirms? I thought it might need to be monthly not quarterly but I still went with it.
I picked 5 days, too. I felt that randomly submitting trade confirmation duplicates wasn’t enough; $5,000 preclearance threshold can be circumvented by trading in small slices multiple times; annual report certainly was not inadequate.