An individual directly involved in preparing a research report needs to sell their holdings in the subject company 20 days before the report's publication due to a court order related to a divorce settlement. The sale is contrary to the report's upcoming 'Buy' recommendation. Under CIRO rules, what is required for this trade to be permitted?

Question

Accepted Answer

CIRO Rule 3619(3) and (4) allow for an exception to the trading blackout and the prohibition on trading contrary to a recommendation with the prior written approval of a designated Executive, if special circumstances exist. A court order would likely qualify.

Discussion