文档介绍：Globe and Mail articles on time trading
The three newspaper articles that follow provide a graphic example of an issue in finance ethics. The story concerns the $300 million in fines levied by the Ontario mission (OSC) on four Canadian mutual panies, three brokerages, and a mutual fund dealer for trading that failed to protect the interests of investors. The fines have been agreed to by panies involved and pensate investors for their losses.
The fines were levied for a practice known as "time trading." Time trading involves rapid movements of funds to take advantage of slight differences in prices among stock markets across different time zones. All told, time trading generated significant fees for the traders but racked up substantial costs for investors. It is important to note that time trading is not itself illegal. What was wrong here was engaging in a practice that placed the interests of the fund managers and brokers above the interests of investors.
Many mutual funds managers and brokers did not engage in time trading and have rules in place against it. However, no one in the industry reported these issues even though the knowledge of these dubious practices must have been fairly widespread given the level of missions and the number