easy · CFA Level I Ethical and Professional Standards
A trader at Helion Rail Securities receives a partial fill for a buy order of Vesper Foods. The order was placed for ten institutional clients and one fee-paying account belonging to the trader's brother.
The trader should:
- Allocate the partial fill pro-rata across all eleven accounts, including the brother's.
- Allocate all shares to the brother's account if his order was the smallest, to simplify the accounting.
- Allocate the shares to the ten institutional clients first and give the brother whatever is left over.
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