An institutional investment dealer is reviewing its account structures to ensure compliance with the Universal Market Integrity Rules (UMIR). Which of the following best describes a "principal account" as defined under UMIR 1.1?

Question

Accepted Answer

Under UMIR 1.1, a principal account is defined as an account in which a Participant or a related entity of the Participant holds a direct or indirect interest other than an interest in the commission charged on a transaction.

An institutional investment dealer is reviewing its account structures to ensure compliance with the Universal Market Integrity Rules (UMIR). Which of the following best describes a "principal account" as defined under UMIR 1.1?

Discussion