🔥 Daily ChallengeRSEExecution and market integrityMedium
A Registered Representative (RR) and their client both wish to buy shares of XYZ Corp at the same time and at the same price. The RR wants to ensure their own order executes before the client's order. What must occur for this to be permissible under UMIR?
8 attempts · 37.5% correct
The RR only needs to obtain consent if the client's order is for more than 50 standard trading units.
The RR must obtain the specific consent of the client for this particular order and note it on the order ticket.Correct
The RR can rely on the blanket consent clause for priority execution found in the firm's standard New Client Application Form.
The RR may execute the principal order first if the client is an institutional investor and the price remains the same.
Why
UMIR 2.1(2)(c) requires specific consent from the client to enter principal orders in priority to client orders; blanket consent is not permitted.
