Explanation:
A. Incorrect because according to the recommendations for Standard III (B), Fair Dealing, when allocating trades for new issues, procedures should include obtaining advance indications of interest, allocating securities by client (rather than portfolio manager), and providing a method for calculating allocations.
B. Correct because according to the recommendations for Standard III (B), Fair Dealing, procedures should include processing and executing orders on a first-in, first-out basis with consideration of bundling orders for efficiency as appropriate for the asset class or the security.
C. Incorrect because according to the recommendations for Standard III (B), Fair Dealing, procedures should include giving all client accounts participating in a block trade the same execution price and charging the same commission. So, the price should be the same, not based on order arrival time.
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A member is developing allocation procedures for block trades and new issues. According to the recommended procedures for compliance with the Standard relating to fair dealing, the member's allocation procedures should involve:
A
prohibiting consideration of advanced interest when allocating trades for new issues.
B
bundling orders on a first-in, first-out basis for efficiency as appropriate for the asset class.
C
giving client accounts participating in a block trade execution prices corresponding to order arrival time.