Crap…you are right…how much was this question worth??
Also, did anyone ever solve the ECN/Principal trade debate?
don’t think so. i put ECN due to 6-month time frame and high % of volume (hence price discovery would be a problem); also principal trade would be for more urgent scenarios and cost more…however, others have definitely disagreed and i went back and forth for a long time…when i left the exam i actually was ticked i picked ECN cause i thought principal trade was better, until i double check the CFAI readings and now i think ECN was the correct choice.
Yeah this one was a tough one for me, but the deciding factors were the high commissions to the broker as well as the possibility of tipping off their trading intentions which lead me to believe that ECN was the right way to go.
All same as my answers. For VWAP, it should be even volume so other people won’t get the chance to game. I think the notes mentioned this too. For shortfall implementation, it requires heavier trading earlier during the day, so if the trading is towards the end of the day, it wouldn’t be feasible. bsc2010 Wrote: ------------------------------------------------------- > guys for vwap i chose, low urgeny and even volume > > > for imp./ SF, i chose, high urgency, even volume, > lower percentage of the daily voulme > > i dont know if the two of above will lead me into > the correct answers…can someone tell me if it > would? (if the company is right, atleast i will > get soem marks)… > > for the first two part of this questions, I chose > market order for the first one > > and prinicipal trade for the second one… > > can someone please tell me how much of this is > right?