Advanced English Dialogue for Business – Crossed trade

Listen to a Business English Dialogue About Crossed trade

Avery: Hi Claire! Do you know what a crossed trade is in finance?

Claire: Hey Avery! Yes, a crossed trade occurs when a buy order and a sell order for the same security are matched within the same brokerage firm.

Avery: Right, and this can happen accidentally or intentionally, violating regulations aimed at ensuring fair and transparent trading.

Claire: Exactly. It’s considered unethical because it could potentially allow one party to benefit unfairly at the expense of others.

Avery: Yes, and regulators closely monitor and regulate crossed trades to maintain market integrity and fairness.

Claire: Absolutely. They impose strict rules and penalties to prevent any market manipulation or insider trading through crossed trades.

Avery: Right. It’s crucial for investors to have confidence in the fairness and transparency of the trading process.

Claire: Yes, because any suspicion of market manipulation or unfair practices can undermine investor trust and confidence.

Avery: Absolutely. Maintaining market integrity is essential for the efficient functioning of financial markets.

Claire: Definitely. Regulators play a critical role in ensuring that trading activities adhere to ethical standards and regulatory requirements.

Avery: Yes, and investors should always be vigilant and report any suspicious trading activities to the authorities.

Claire: Absolutely. By working together with regulators, investors can help uphold the integrity of the financial markets.