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发表于 2011-7-11 18:34 | 只看该作者

Priority of transactions

investment, restricted, purchase, against, manager

Something i came to mind when i read priority of transactions.

An investment manager has a clear written mandate from his client to purchase Stock A @ $50 or better . he plans to purchase stock A for his client, then on behalf of his firm and finally for himself.

The stock touches 49. he quickly purchases it for his client, then for his firm. in the mean time the price drops to 46, at which point he purchases for himself. there are no restricted/blackout periods against trading for self and / or firm. he exerts no influence on price movement of stock, has no material non public info.in short he had no freakin clue that the price would touch 46.

does this seem like a violation of any standard?should he have not purchased for self and waited till the price touched 49 or more to avoid the mere appearance of conflict of interest?

suyash1989

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发表于 2011-7-11 18:34 | 只看该作者

First client , then the firma and then self...No violation

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jim8z3

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发表于 2011-7-11 18:34 | 只看该作者

Violation! You need to size up the order and promise same execution price within the block. I am guessing..

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ftwcfa

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发表于 2011-7-11 18:34 | 只看该作者

Is it a violation he purchased at $49 where the client specifically said $50 or above?

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homie

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发表于 2011-7-11 18:34 | 只看该作者

Ummm normally people want to purchase lower rather than higher... he didn't say above, he said better... When buying, better is lower

Just throwing this out there

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thisisbrianly

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发表于 2011-7-11 18:34 | 只看该作者

No violation, the client trade was executed first and allocated to the account.

The manager was correct to ticket their trade separately.

Blocking is not appropriate in this case as "Pro" trades are executed separate from client trades.

Also the manager would most likely be required to complete Pre-clearance and obtain approval from a supervisor. This alone forces separation of trades as the ticket should match the terms of the approval( buy/ sell, price, quantity etc)

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dmar