The Securities and Exchange Commission recently approved new exchange rules for breaking stock trades that deviate so substantially from current market prices that they are considered “clearly erroneous.” The rules would for the first time provide a consistent standard across stock exchanges and reduce uncertainty about what happens to a trade depending on where it is executed, according to the SEC. “Clearly erroneous trades can result from a variety of causes, including human error or computer malfunction. Because the markets today are so fast, automated and interconnected, an erroneous trade on one market can very rapidly trigger a wave of similarly erroneous trades on other markets,” the SEC states. For example, the SEC says, “if the last trade in a stock is $20, and a computer malfunction at one firm causes a series of trades to occur on multiple exchanges at prices exceeding $50, the automated systems of other firms may quickly follow, with erroneous trades rapidly impacting multiple markets and market participants.”
FundQuest Inc.’s new managed account program, called Advisor Gateway, is now available from JP Morgan’s Broker Dealer Services business. Advisor Gateway provides access to FundQuest’s reporting, portfolio modeling, fund selection, and rebalancing tools. Other services include due diligence, training, back-office services, and wholesaling support. The managed account offerings on Advisor Gateway include Unified Managed Accounts, Mutual Fund Portfolios, Income Portfolios, and Separately Managed Accounts. FundQuest also states in a release that the new program offers Advisor Choice, an advisor/client constructed portfolio with various asset types utilizing FundQuest tools including asset allocation and performance reporting. FundQuest has 180 advisory firms as clients and $40 billion in assets under management in its combined U.S. and European operations.