As per my understanding, a flexible trading arrangement involves a carefree style of investing. Investing without giving much importance to the source of information or whether the information is made public yet. Therefore, giving flexible trading terms to a client may create a potential violation of trading on material non-public information.
To answer your other question, even though there is a difference in time zone, the ultimate investment is made in a US-based company so rules set up by US regulators will be followed. Allowing investment after the close of the US market is prohibited by US regulators. But since Mancini is allowing the hedge fund to invest in all SVF’s MF six hours after the close of the market, it is illegal and also unfair on the part of other SVF clients. Therefore, violation of fair dealing as well.
-How does material non public information come into the picture when nothing is mentioned
-How is it illegal when it’s an Asian client on a different time zone
As per my understanding, a flexible trading arrangement involves a carefree style of investing. Investing without giving much importance to the source of information or whether the information is made public yet. Therefore, giving flexible trading terms to a client may create a potential violation of trading on material non-public information.
To answer your other question, even though there is a difference in time zone, the ultimate investment is made in a US-based company so rules set up by US regulators will be followed. Allowing investment after the close of the US market is prohibited by US regulators. But since Mancini is allowing the hedge fund to invest in all SVF’s MF six hours after the close of the market, it is illegal and also unfair on the part of other SVF clients. Therefore, violation of fair dealing as well.