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Strategies & Market Trends : Margin Calls - Share The Pain -- Ignore unavailable to you. Want to Upgrade?

To: jj_ who wrote (85)	12/2/2000 5:12:43 PM
From: Dale Baker	Read Replies (1) \| Respond to of 158

I don't know the precise answer but you can be sure that there is a thick Web of regulations regarding brokerage employee trading. If they had that sort of freedom then brokers would be even less trustworthy than they are today.

To: jj_ who wrote (85)	12/2/2000 9:23:01 PM
From: daffodil	Respond to of 158

Luigi, any transaction where there may be a conflict of interest is always questionable. what are the legalities involved if a margin clerk was to buy a clients shares rather then sell them to the open market;sell them out to his or her own account...is this legal. If, in the situation you've described, a customer is made to sell at less than a fair market price, thereby giving the clerk the opportunity to buy at better than a fair market price, and if the trading desk at the clerk's firm agreed to cross the trade, then it certainly looks like an improper conflict of interest. BTW, many people try to play the timing of margin sellouts at a particular firm or on the street in general. Some people believe that they cluster around 11:00 - 12:00 (after the morning mail and FedExes have been received), for example, so they might defer buying until the afternoon. So let's say that a clerk knew that his firm had just finished selling out oodles of MSFT, then he goes in to buy it on the open market (liquid stock, fair market price), is he acting improperly on insider fiduciary information? Interesting question.