Trade Restrictions for Trading Member Undertaking Research
A Trading Member and its staff undertaking research activities must not:
(a) knowingly buy or sell a security or futures contract if the Trading Member or its staff has material information not generally available to the public in relation to the security or futures contract;
(b) 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;
(c) procure any person to buy or sell a security or futures contract if the Trading Member or its staff is prohibited under Rules 4.39.10(a) or (b) from doing so; and
(d) buy or sell a security or futures contract contrary to the most recent research report published by the Trading Member, unless sufficient time has passed since the report's publication for the market to react to the information. This trading restriction does not apply:
(i) to the Trading Member if the Trading Member is acting on a customer's express instructions;
(ii) to the Trading Member and its staff undertaking research activities if significant news is announced that would change the research report or investment recommendation; or
(iii) to a staff member undertaking research activities if the staff member is in financial difficulty and must sell the security or futures contract. The Trading Member must maintain documentation of the staff member's financial condition;
(iv) to the Trading Member if the proprietary desk of the Trading Member had no knowledge of the report and its contents before it was issued.
Added on 3 June 20193 June 2019.