Whole Section

  • 15.8 Trade Restrictions

    • 15.8.1

      A Trading Member and a research analyst must not:—

      (1) knowingly buy or sell a security or futures contract if the Trading Member or research analyst has material information not generally available to the public in relation to the security or Futures Contract;
      (2) except on instructions from a customer, knowingly buy or sell a security or futures contract if the transaction may create a conflict of interest in relation to the Trading Member's duty to its customers;
      (3) procure any person to buy or sell a security or futures contract if the Trading Member or research analyst is prohibited under Rules 15.8.1(1) and (2) from doing so; and
      (4) buy or sell a security or futures contract contrary to the most recent research report published by the Trading Member unless 3 Market Days have passed since the report was issued. This trading restriction does not apply if:—
      (a) the Trading Member is acting on a customer's express instructions;
      (b) significant news is announced that would change the research report or investment recommendation; or
      (c) the research analyst is in financial difficulty and must sell the security or futures contract. The Trading Member must ensure that the research analyst obtains prior written approval of a senior management staff independent of research, dealing or corporate finance for each trade. The Trading Member must also maintain documentation of the financial condition and the decision for 7 years.

      Amended on 3 April 20083 April 2008 and 8 October 20188 October 2018.