♦Noncompetitive Trading is Prohibitted. Except When It’s Not♦
If your firm or any of its customers engage in authorized non-competitive trading (block trading and EFRPs), you’d better know the rules. One misstep among the maze of complex regulations can have devastating consequences.
Did you read about the FCM that was fined $5 million for designating and processing off-exchange trades as Exchanges for Related Positions when there were no transfers of related cash or OTC derivative positions to support the trades?
This is technical stuff that your staff needs to understand top to bottom. In addition to the $5 million fine mentioned above, the employee who arranged the trades was fined $300,000. Many firms find themselves vulnerable amid a growing number of disciplinary actions in this area. When a regulatory body makes an inquiry, the first question it often asks is “Have you provided training to your associates?”
We’re pleased to announce the release of our first course on Non-Competitive Trading (Block Trades and EFRPs), designed to help professionals understand the often-confusing landscape of authorized non-competitive trades. It’s available 24/7 online and takes approximately 50 minutes to complete.
In the near future we will be releasing another new course covering Market Conduct issues (disruptive trading, wash trading, etc.). The Non-Competitive Trading course is an excellent prelude to the Market Conduct course, which covers other areas of current regulatory scrutiny.
