Trading, Settlement, and Prohibited Activities

This chapter explains what happens once an order moves into the trading and post-trade environment. It covers how trades are entered and settled, what conduct is prohibited, and how operational issues such as corrections and transfers still create client-protection and supervision risk.

Topics in This Chapter

• How Securities Are Traded
• Types of Orders
• Sales and Trading Conduct
• Prohibited Activities
• Settlements, Transfers, and Corrections

Exam Focus

Expect exam traps that blur execution, settlement, and prohibited conduct together. The stronger answer keeps those functions separate, identifies where the real risk sits, and explains when a trading problem has become a conduct, books-and-records, or escalation issue.

In this section

• How Securities Trading Works
  Understand Canadian trading venues, participants, order routing, transparency, and the trade lifecycle through T+1 settlement.
• Order Types and Trading Instructions
  Understand the main order types, time-in-force instructions, execution trade-offs, and documentation issues in client trading.
• Trading Conduct
  Understand client-first trading conduct, suitability, disclosure, documentation, and supervision in securities execution.
• Prohibited Activities
  Understand insider trading, tipping, market manipulation, frontrunning, unauthorized trading, and related escalation duties.
• Settlement, Transfers, and Corrections
  Understand T+1 settlement, client transfers, trade corrections, and the controls that prevent post-trade errors.