Trading Ahead of Research Reports

What this video covers

• The four prohibited inventory actions: establish, increase, decrease, and liquidate
• Why the rule covers both a security and its derivatives, including options
• Why advance knowledge of the publication timing alone is enough, even without knowing the rating or price target
• Why the rule has no customer element or materiality element, and why it applies to the member firm
• Where the definition of a research report comes from, and why this rule has no supplementary material
• Which people must be separated from trading personnel, including research staff and anyone who knows the report's content or timing
• How reasonably designed, established, maintained, and enforced procedures must restrict or limit information flow for the benefit of the member or any other person