Prohibited Trading Activities
Chapters in this video
- 0:00 Front-running block transactions, the 10,000-share threshold
- 2:41 Front-running versus trading ahead: separate triggers
- 3:21 Churning, excessive trading, and Reg BI's four obligations
- 5:45 The 5% markup policy: guidance, not a safe harbor
- 7:17 Prohibited payments: publications versus market making
- 7:55 Prohibited breakpoint sales and sharing profits or losses
- 9:07 Rapid-fire exam recap
What this video covers
- The 10,000-share block-transaction threshold and why partial reporting does not make block information public
- The critical distinction between front-running (block-trade information) and trading ahead (customer order in hand)
- Why churning or excessive trading requires a series of recommended transactions taken together, not one isolated trade
- Regulation Best Interest (Reg BI) coverage for retail customers and the four obligations Sam the Supervisor audits
- The 5% markup policy: guidance, not a safe harbor or ceiling, and why even 4.9% can be unfair under all-circumstances review
- How to separately identify prohibited payments involving publications versus prohibited payments for market making
- Prohibited breakpoint sales, improper sharing in customer profits or losses, and the high standards of commercial honor rule
Read the full lesson, free
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