trading at work using undisclosed account

Do they make you hold a postion for a minimum 30 days or until you lose 15% of its original value? Do they require permission to buy and liquidate? If not, then you have it pretty easy as compared to some other places.

-Neo

Quote from copa8:

most likely won't hit one, since i only trade 4 stocks/etf and never at once - AIG, FRK, GLD, BAC. if somehow, AIG is added to the restricted list, then i don't trade it.
again, it's the 'no shorting' that's the problem. don't wanna buy puts, due to wider spread, dealing w/time decay, etc.
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Quote from Neodude:

Do they make you hold a postion for a minimum 30 days or until you lose 15% of its original value? Do they require permission to buy and liquidate? If not, then you have it pretty easy as compared to some other places.

-Neo
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no minimum holding period nor % loss rule. but, permission is required for any purchases and sales. just don't agree with the 'no shorting' rule, which is supposedly for safety reasons. :confused:



hi jackR - bank, medium size, asset mgmt. :confused:
 
Here are the some of the draconian requirements I've encountered in the industry so far:

0. Required letter of permission to open an account.
1. Required permission to trade, besides stuff on restricted list.
2. Required permission to trade by family members
3. 30 day min holding period or 15% loss.
4. Small list of approved and overpriced brokers
5. No shorting
6. No excess trading or activity that "looks" like speculation.

Rejoice in your freedom. :D

-Neo


Quote from copa8:

no minimum holding period nor % loss rule. but, permission is required for any purchases and sales. just don't agree with the 'no shorting' rule, which is supposedly for safety reasons. :confused:



hi jackR - bank, medium size, asset mgmt. :confused:
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This is what he does -->bank, medium size, asset mgmt

If he trades against their rules and is caught or the SEC sends a letter asking for info on his activity, whatever he made, will cost his frim ten times to investigate, report etc and show they're in compliance. Hes about to embark on a very dumb thing.
 
Copa:

I'd weigh my salary versus the penalty for being caught violating bank policy against the profit potential. I assume that you would have a hard time getting another banking job as you would not be able to use your current bank as a reference.

What you would be doing would not be illegal (assuming you had no "insider" info) but it would be unethical.

If you worked for me and I found out you violated policy you'd be fired. I would have no problems with your trading. It would probably consume less time than a phone call or a basketball ladder.

Jack
 
If you get cought you will get fired and that is all. Not barred from the idustry or anything so dramatic. You may even walk away with a warning. I have seen many poeple warned and one outright fired.

From my observations your odds of getting caught if you do not tell are almost zero. But if you tell them of the account and then forget to tell compliance of the trade you will get the hammer.

You should inquire on ETFs. Many institutions do not have restrictions on diversified funds.

You may find other loop holes since compliance people usually know nothing about trading. For example at one firm we could say we want to buy 100,000 shares of GE GTC Not Held. We could do this for as many stocks as we wanted and this allowed us to work a buy order for an unlimited time (GTC) at any price (not held). Then we would also put in a sell request same way so we could close the position out.

Ps I wasn't trading 100,000 of GE, that is just so I would not have any restrictions on volume.

Best to be honest unless you are talking about more money than you are earning at your job.

:)
 
Quote from riskarb:

It's Draconian to limit a bank employee from trading. I would buy a Sprint PPC 6700 and open an account with IB if clearing stock and futures. Their web platform is simple and effective. I clock 700kb on Sprint's bband service.
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unfortunately, we have the same rules here... so..

I'm not stupid enough to hide an account in MY NAME from compliance. Just downright asking for it...

Also, i'm not stupid enough to play around with those on the CFRL (corp finance restricted list) or something even SIMILAR to it.

I love Treasuries... no worry, no hassle - of course, i'd be pissed if i were at Pimco or RBS and had a restriction on tsys, but not equities.. or maybe not... :D

-c

Of course, the only broker we're allowed to use is... You guessed it. Our OWN broker. No outside accounts are permissible. And, they rape you on commission, execution. Rediculous.

i am not going to advocate doing something illegal, but if you ARE going to do it, just don't be stupid.
 
Quote from tomcole:

Serious firms who have these restrictions, have them because they think the employee may be exposed to non-public material info about companies. They have a list of companies which are not tradeable by employees, he simply hasnt hit on one of these stocks.
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i agree with this pov, i left the industry largely for this reason. it def sucks and maybe he honestly just wants to trade independently of privy info, but what's to keep someone from abusing the info available and breaking the law? if trading is that important to you, either do it professionally or leave and do it independently
 
Would like to know what are the chances of getting into trouble if trading with spouse's account.

i have a very big restriction of not trading anything.
i am in IT department with a big finacial firm they have all the restricition specified by Neo.

would like to know what chance of getting in trouble.

P.s - i dont have any insider info.
 
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