NO.PZ2021102801000006
问题如下:
Karen Swanson and Gabriel Russell recently co-founded Green Savanah Securities, an asset management firm conducting various equity and fixed-income strategies. Swanson and Russell are formulating Green Savannah’s trade policy. During a meeting, they agree on an initial set of themes regarding trade policy formation:
■ Theme 1: We should determine an optimal execution approach and apply that approach to each asset class managed.
■ Theme 2: In aggregating trades for pooled accounts, any partially executed orders need to be allocated on a pro-rata basis.
■ Theme 3: The principles behind our process to find a broker should be consistent across each asset class managed.
■ Theme 4: To act in our clients’ best interests, we need to disclose all trade errors to them.
Identify two inappropriate themes in the partners’ set. Justify your response.
选项:
解释:
Theme 1 is inappropriate because the optimal execution approach may differ by asset class, level of security liquidity, and security trading mechanism (order-driven markets, quote-driven markets, and brokered markets). Green Savannah’s trade policy document should describe the factors used in determining how an order can be executed in an optimal manner for a given scenario.
Theme 4 is inappropriate because as part of a suitable policy for the treatment of trade errors, those errors and any resulting gains/losses need to be disclosed to Green Savannah’s compliance department and documented in a trade error log. The priority is to ensure errors are resolved in a way that prevents adverse impact for the client, not to ensure complete disclosure.
■ Theme 1: We should determine an optimal execution approach and apply that approach to each asset class managed. It is not correct. We need to use different trading strategies based on different asset class considering their trading size, liquidity and trading venues.
■ Theme 4: To act in our clients’ best interests, we need to disclose all trade errors to them. It is not correct. We need to not only disclose all trade error but also correct all trade errors to them.