Question 1 of 30
Javier is a trader at a large Canadian investment firm. Anya, a portfolio manager at the same firm, informs Javier that she intends to execute a large block trade (1 million shares) of Maple Leaf Foods (MFI) on behalf of a major institutional client. Javier realizes that this block trade will likely move the market price of MFI significantly. Before Anya executes the block trade, Javier decides to purchase 10,000 shares of MFI for the firm\'s proprietary trading account, anticipating a price increase after Anya\'s order is filled. Javier believes he can generate a quick profit for the firm, and rationalizes that it is within the bounds of acceptable risk management. Considering Canadian securities regulations and ethical trading practices, what is Javier\'s MOST appropriate course of action upon realizing the potential conflict of interest?
Immediately disclose the situation to the firm's compliance officer, explaining his concerns about the potential conflict of interest and his planned trading activity.
Inform Anya that he is aware of her impending block trade and that he will delay any trading activity in MFI until after her order is filled to avoid any perception of impropriety.
Directly inform the institutional client about Anya's impending block trade and his concerns about the potential market impact, seeking their guidance on how to proceed.
Proceed with the purchase of MFI shares for the firm's proprietary account, but closely monitor the market impact of Anya's block trade and adjust his position accordingly to minimize any potential losses for the firm.

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