Exam ICWIM Topic 1 Question 127 Discussion
Actual exam question for CISI's ICWIM exam
Question #: 127
Topic #: 1
Question #: 127
Topic #: 1
A stockbroking firm receives both buy and sell orders for the same security but from different clients. How can they best avoid a conflict of interest?
Suggested Answer: B Vote an answer
* Avoiding Conflicts of Interest:
* By placing orders in the order they are received, the firm ensures fairness and transparency.
* This approach avoids any preferential treatment and complies with regulatory obligations.
* Elimination of Other Options:
* A: Withdrawing services would not address the conflict and is impractical.
* C: Disclosing orders breaches confidentiality agreements.
* D: Prioritizing sell orders introduces bias and conflict.
References:
* ICWIM Module 5: Discussion on ethics and conflict of interest mitigation in trading.
* By placing orders in the order they are received, the firm ensures fairness and transparency.
* This approach avoids any preferential treatment and complies with regulatory obligations.
* Elimination of Other Options:
* A: Withdrawing services would not address the conflict and is impractical.
* C: Disclosing orders breaches confidentiality agreements.
* D: Prioritizing sell orders introduces bias and conflict.
References:
* ICWIM Module 5: Discussion on ethics and conflict of interest mitigation in trading.
by Marsh at Jan 29, 2026, 07:07 AM
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