NO.PZ2023021602000030
问题如下：
Merchant Capital Partners, a regional investment bank, acts as a market maker for Vital Link Health Services and other small firms listed on an over-the-counter exchange. For those shares for whom Merchant acts as market maker, it trades for its own book as well as engaging in risk arbitrage trading. Merchant allows staff members to trade in shares once clients and the company have traded. Merchant recently obtained material nonpublic information regarding Vital's planned reverse takeover of a publicly listed competitor. In order to be in compliance with the CFA Institute Code and Standards, which type of trading in Vital shares should Merchant least likely suspend? 2020 MOCK A PM #15选项：
A.Personal B.Risk arbitrage C.Passive proprietary解释：
C is correct because according to Standard II(A)-Material Nonpublic Information, Recommended Procedures for Compliance, if Merchant stopped market making, a form of proprietary trading, due to being in possession of material nonpublic information, it could tip off investors that Vital is likely to be making a major announcement in the near future. This would be counterproductive to the goals of maintaining the confidentiality of information and providing market liquidity. The Standard recommends that market makers remain passive when in possession of material nonpublic information. The Standard also requires personal trading to be suspended when in possession of material nonpublic information, and it is prudent to suspend arbitrage trading to prevent profits from insider trading.
A is incorrect because when in possession of material nonpublic information, Standard II(A)-Material Nonpublic Information requires personal trading to be suspended.
B is incorrect because when in possession of material nonpublic information, according to Standard II(A)-Material Nonpublic Information, it is prudent to suspend arbitrage trading to prevent profits from insider trading.
能讲一下这个吗
