What should a broker do if his quoted price is hit simultaneously by several dealers for a total amount greater than that for which the price concerned was valid?
A) allot the amount for which the price is valid pro rata amongst some principals in accordance with the amount proposed by each and inform the other dealers that "nothing was done"
B) decide which principals he will allot the amount for which the price is valid and inform the other dealers that "nothing was done"
C) evenly allocate the amount for which the price is valid amongst all the principals and inform all the relevant dealers
D) apportion the amount for which the price is valid pro rata amongst all the principals concerned in accordance with the amount proposed by each and inform all the relevant dealers

Question

Quizplus · Accepted Answer

When a broker's quoted price is hit simultaneously by several dealers for a total amount greater than that for which the price concerned was valid, the broker should apportion the amount for which the price is valid pro rata amongst all the principals concerned in accordance with the amount proposed by each and inform all the relevant dealers. This ensures a fair apportionment of the trade among all interested parties.

What Should a Broker Do If His Quoted Price Is