Dealers are allowed to trade for their own account only if:
A) they have good track records in dealing both for their institution and for themselves
B) there have been no previous conflicts of interest in the dealing room
C) there is a clearly defined and written policy about the matter
D) the dealers see no conflict of interest in such dealing

Question

Quizplus · Accepted Answer

It is important for there to be a clearly defined and written policy about dealers trading for their own account in order to prevent conflicts of interest and ensure fair dealing practices. A and D rely too much on the subjective opinions and actions of the dealers and do not provide sufficient safeguards for clients. B is too vague and does not provide any concrete policy or guidelines.

Dealers Are Allowed to Trade for Their Own Account Only