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#218 - Employee Trading Restrictions & Trading Compliance: Hey everyone. This is Kirk here again at optionalpha.com and welcome back to the daily call. Today, we’re going to be talking about employee trading restrictions and trading compliance. I actually get a lot of questions about this. I get a lot of...

#218 - Employee Trading Restrictions & Trading Compliance: Hey everyone. This is Kirk here again at optionalpha.com and welcome back to the daily call. Today, we’re going to be talking about employee trading restrictions and trading compliance. I actually get a lot of questions about this. I get a lot of...

A partire dalThe "Daily Call" From Option Alpha


#218 - Employee Trading Restrictions & Trading Compliance: Hey everyone. This is Kirk here again at optionalpha.com and welcome back to the daily call. Today, we’re going to be talking about employee trading restrictions and trading compliance. I actually get a lot of questions about this. I get a lot of...

A partire dalThe "Daily Call" From Option Alpha

valutazioni:
Lunghezza:
5 minuti
Pubblicato:
Apr 28, 2018
Formato:
Episodio podcast

Descrizione

Hey everyone. This is Kirk here again at optionalpha.com and welcome back to the daily call. Today, we’re going to be talking about employee trading restrictions and trading compliance. I actually get a lot of questions about this. I get a lot of questions about how people want to try to get around these restrictions or compliance in their firm that they work for, company that they work for. The end result here is that you should not be trying to escape the system and get around some of these restrictions and trading compliance. If your firm or if the company that you work for has defined restrictions around trading or how you should notify people of your trading activities, you really want to follow those and not try to walk a very, very thin line. There is no room in this industry for people to be trying to manipulate the system. Now, in most cases, most companies… And you’ll have to check with your own company or your own firm for their particular regulations and laws. But most companies have restrictions around trading in companies or in products that have a clear sense of conflict of interest. If your company is let's say a broker dealer or you’re an investment bank, you probably have trading restrictions around trading any of the companies that you cover, any of the industries that you cover, any particular sectors that you cover or even trading your own firm’s stock or underlying options without predefined approval. And in many cases, there are also restrictions on how quickly you can buy or sell underlying securities. You have either 30 or 60 or in some cases, 90-day windows that you have to maintain the position before you get out of it and this is really to discourage this idea of quickly buying or selling on some sort of insider potential information or some sort of hunch that you might have about what a company or whatever company you’re at might be doing in the future. I think all this stuff is really actually good. I think look, people should not be allowed to trade based on insider information. Whether it's hearsay or not, they shouldn't be allowed to do something where there's a clear conflict of interest and I think that's actually good stuff for the industry. It makes everyone a little bit more regulated. It's one of the things though that I think does hold people back and I get that it holds you back. My suggestion is that if you do work for a company that has a very strict policy on what you trade and how you trade, is to talk to either the compliance officer or the HR manager and find out how you can streamline that process of approval. If you want to make trades, if you want to actively trade options, figure out who you need to talk to, make sure you talk to that person, be totally open and clear about what you want to do and get a framework in place. Maybe they will grant you approval to trade in certain products versus other products without having to go through a bunch of hoops and legal process and paperwork before you make those trades and those transactions. I think it's actually worth it just to really sit down with somebody maybe 10 or 15 minutes. I'm sure that they would want to do this. They probably appreciate people coming to them first before asking for forgiveness later and trying to make trades. It’s also noted that many employee trading restrictions and trading compliance agreements have in place restrictions on other people who are part of your family or stand to gain financial interest for many of the knowledge that you have. This would also include any of your spouses, significant others, people who are living at your house that may not even be related family members. I know that people try to do that. They try to skirt the system and say, “Well, that's my friend who’s living here and he's not really a family member.” But if he's around you and stands to gain financially from what you're doing in any way, shape or form, whether it’s through monetary means or otherwise, then it's probabl
Pubblicato:
Apr 28, 2018
Formato:
Episodio podcast