SIE practice questionmediumTrade Execution
A firm receives a client’s limit order at $52 and immediately buys 500 shares for its own account at $52 without executing the client’s order. What rule is violated?
- AManning Rule (Limit Order Protection Rule)✓ Correct answer
- BRegulation D
- CRegulation A+
- DRegulation S
Explanation
Why A — Manning Rule (Limit Order Protection Rule)
The Manning Rule prohibits firms from trading for their own accounts ahead of client limit orders at the same price. Reg D, A+, and S all concern registration of offerings, not order handling.
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