What priority do client orders have over orders from dealer members' employees?

What priority do client orders have over orders from dealer members' employees?

• A. Client orders rank above all other orders
• B. Employee orders have priority over client orders
• C. All orders are treated equally regardless of origin
• D. Orders from executives rank higher than client orders

Answer: (A)

Client orders rank above all other orders because maintaining client trust and satisfaction is paramount in the financial services industry. This prioritization is essential to ensure that clients feel confident that their needs and interests are being treated with utmost importance. When client orders are executed before employee orders, it reinforces the commitment to ethical practices and professional conduct, fostering long-term relationships with clients.

The prioritization of client orders helps to prevent conflicts of interest and demonstrates that the firm is dedicated to serving its clients first, ultimately promoting a fair and transparent marketplace. In this context, proper conduct demands that the interests of the client are placed above any internal operations, including those from the firm's own employees. This practice is fundamental to upholding fiduciary duties and aligns with regulatory expectations regarding the treatment of client orders.