Which of the following is part of the compliance requirements for participants?

Which of the following is part of the compliance requirements for participants?

• A. The code of conduct for securities trading, laid down in SESTA, FINMA circulars and the corresponding professional standards
• B. Those domestic and foreign exchange-related laws that apply to it, the corresponding implementing provisions, the rulings of the relevant supervisory authority, the Rule Book, the Directives and any rulings issued by the Exchange bodies
• C. A requirement to appoint a separate compliance officer for every business unit
• D. Participation in market-making duties

Answer: (A)

The main idea is that participants must follow a formal code of conduct for securities trading. This code, laid down in SESTA, FINMA circulars, and the corresponding professional standards, sets the binding rules for how professionals should behave in markets—covering ethical conduct, handling of information, avoidance of insider trading, conflicts of interest, and fair dealing with clients and other market participants. It provides a clear, universally applicable baseline that underpins daily trading activity and market integrity. While there are broader obligations that come from applicable laws, the exchange’s Rule Book, Directives, and rulings, and the general expectation to comply with legal requirements, the most direct and specific compliance requirement described here is adherence to the code of conduct. The other elements describe additional duties or regulatory contexts, but the code of conduct is the fundamental standard that defines how participants must conduct themselves.

The main idea is that participants must follow a formal code of conduct for securities trading. This code, laid down in SESTA, FINMA circulars, and the corresponding professional standards, sets the binding rules for how professionals should behave in markets—covering ethical conduct, handling of information, avoidance of insider trading, conflicts of interest, and fair dealing with clients and other market participants. It provides a clear, universally applicable baseline that underpins daily trading activity and market integrity.

While there are broader obligations that come from applicable laws, the exchange’s Rule Book, Directives, and rulings, and the general expectation to comply with legal requirements, the most direct and specific compliance requirement described here is adherence to the code of conduct. The other elements describe additional duties or regulatory contexts, but the code of conduct is the fundamental standard that defines how participants must conduct themselves.