Re: I Think I Have A Partial Answer
My 2 cents...
During an ethics course for cbot floor traders, there were many different scenarios thrown at you. For example, you heard the broker has a huge buy stop at 110.00. Is it ethical try and run the stop? (buy everything below 110.00, trade a 1 lot at 110, and have the broker buy all his 110s from you.) Of course, they kept changing the scenario just a little bit until you and the broker were basically in kahootz, and you were sharing profits at lunch.
What the exchange was trying to imply was this: As soon as a trade does not involve risk for both buyer & seller, it is certainly against exchange rules. If the risk is not the same for each party, you are in a grey area, and you better hope for a jury that sees it your way.
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