Major Conflict of Interest?

Discussion in 'Professional Trading' started by elduerino, Feb 23, 2010.

  1. Hello

    I just landed an internship with a great mutal fund company here in Canada. I also am in the process of finalizing a prop trading agreement where they will automate my main strategy. The strategy works out to about .15% EV with a 20:1 win/loss ratio one or twice a day on about 150K. So essentially I will me making 125 a day conservatively. Now I will be an equity analyst with the mutal fund organization. Is this going to get me in trouble, or is best to just be quite about the situation? I feel I should bring it up with my manager (and they say traders have no morals), they trade long term blah blah blah, do you people see this being a massive conflict of interest?

  2. l2tradr


    External accounts (if even allowed) must be disclosed to compliance. Don't risk your license and career for $125 a day. They might let you keep the account but it is highly unlikely, as you'll trade things that will be on your no-trade list at times (I would assume, esp if you trade stocks).

  3. yes you must notify them about all your outside activities
  4. thanks guys

    that makes my life simple.
  5. ken__0


    If your program is working let it ride and trade for your self .
    unless this Internship actually pays more then that,, the decision is one of greed... keep in mind if it works now it may not work next week ,,, promising jobs are hard to find these days ...
  6. I don't think that you've read those papers you have signed before you were hired .No outside trading allowed to lower and middle level employees in any kind of regulated fund.
  7. AND sponsor of your securities license must allow it. If they say "no", you'll have to pick one or the other... or find another B/D who will allow.

    Why is this the case? The SEC regs hold your B/D responsible for any trouble you might get into financially... even if they didn't know about it. SEC says B/D SHOULD have known, regardless.
  8. l2tradr


    The SEC has nothing to do with Canada. But Canadian regulation is similar.
  9. Gomen. Spaced over that fact... However, I was intending my post to be general info about the principle of "why Reps must disclose outside activities to securities license sponsor"...

    Good luck with your gig.
  10. Thanks for the advice, I figured as much. I don't have a licenese as it is Canada and I'm a researcher. I didn't have any contract to sign as it was through my co-op department at school.
    #10     Feb 24, 2010