CFA CFA Level 1 Real Application Question of Ethics Standard II(B)

Real Application Question of Ethics Standard II(B)

  • This topic has 1 reply, 2 voices, and was last updated Jan-19 by rsparks.
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    • ClelandJ

      Reading Two states that “members and Candidates must not engage in practices that distort prices or artificially inflate trading volume with the intent to mislead market participants.”
      My question is how does this apply to iceberg orders in the market place? This seems like its an effort to control the volume and price distortion in the marketplace, but at the same time it seems misleading to the market participants. 

    • rsparks

      I work for a superfund australia and we went through a gov’t change on default investment options. we personally had to adjust re-allocations and move 8billion in funds. this was done in stages to minimize the impact on the market and thus not artificially inflate volume which is a major market sentiment indicator. The same would apply to your case.

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