Identifying and Avoiding Prohibited Practices with Customer Orders: Rapid Fire

What this video covers

• The four facts that trigger the trading-ahead rule, including protection for another broker-dealer's customer
• The timed, sized, and priced cure: immediately filling the customer order up to the proprietary trade size at the same or better price
• The every-effort requirement for marketable orders and held marketable orders, including opposite-side crosses at or between the best bid and offer
• Why the manipulative and deceptive devices rule has no exceptions or thresholds
• How the large-order exception uses both 10,000 shares or more and at least $100,000 in value, and why institutional accounts follow a separate branch
• How price improvement differs for a national market system (NMS) stock priced at $1 or more and an over-the-counter (OTC) equity security
• How disclosure, information barriers, riskless principal procedures, intermarket sweep orders, odd lots, bona fide errors, triggered orders, after-hours processing, and adviser capacity rules affect the analysis