Prearranged trading

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Prearranged trading

Possibly fraudulent practice whereby commodities dealers carry out risk-free trades at predetermined prices to acquire tax advantages.

Prearranged Trading

The practice of two commodity dealers trading with each other at prices upon which they have agreed in advance. Pre-arranged trading is designed to exclude other dealers from the market, to gain a tax advantage, or both. As a result, pre-arranged trading is illegal.
References in periodicals archive ?
Swiss navigation company Garmin Ltd (Nasdaq:GRMN) on Friday reported a pre-arranged trading plan to sell a portion of trust's shares in the company over a designated period under Rule 10b5-1 of the Securities and Exchange Act of 1934.
Those engaging in illegal manipulative trading activity such as "short and distort" schemes, "naked short" selling, and pre-arranged trading are accountable under federal laws enforced by the regulators.
At Dashs direction, Hallmark used a pre-arranged trading scheme to sell these shares to the customers at $3.00 per share.
The latest sale was through a "pre-arranged trading plan", which UKFI appointed US investment bank Morgan Stanley to undertake.
UK Financial Investments (UKFI), which manages the government's stakes in bailed out banks, hired Morgan Stanley in December to sell Lloyds shares on the stock market through a "pre-arranged trading plan".
The repurchases may be made on the open market, via pre-arranged trading plans, accelerated share repurchase plans, in block trades or otherwise and may include derivative transactions.
The sale was made pursuant to a pre-arranged trading plan set up on Oct.
The sale is part of a pre-arranged trading plan for Schmidt's "long-term strategy for individual asset diversification and liquidity," according to the filing.
Consistent with prior stock repurchase authorizations, InterDigital may purchase stock from time to time through open market purchases, pre-arranged trading plans or privately-negotiated transactions.
He plans to sell about 534,000 Class A shares as part of a pre-arranged trading plan.
InterDigital under the new programme may similarly buy stock regularly via open market purchases, pre-arranged trading plans or privately-negotiated transactions, as it did previously.
Consistent with prior stock repurchase authorisations, InterDigital may purchase stock from time to time through open market purchases, pre-arranged trading plans or privately-negotiated transactions.