We at Money Management Executive would like to hear back from our readers on how they define market timing within their respective firms. Despite being at the heart of the mutual fund trading scandal and the impetus behind a wave of reform, there remains no industrywide definition as to what constitutes market timing, which remains completely within the law if properly disclosed to shareholders.
Many firms have spent hundreds of thousands of dollars on upgrading their systems and implementing surveillance programs to detect abusive trading. Without clearly defined parameters across the fund business, fund houses and service providers will undoubtedly continue to pump cash into technology and operations related to their compliance programs.
Please send us an email sharing your thoughts on the matter and provide a "real-world" experience from within your firm. Send all comments to firstname.lastname@example.org.