A broker executes a client's order after internal orders that use preferential treatment, violating the priority of transactions. Which Standard is violated?

• A. Standard V.B Communication with Clients and Prospective Clients
• B. Standard VI.B Priority of Transactions
• C. Standard VI.A Disclosure of Conflicts
• D. Standard IV.A Loyalty, Prudence, and Care

Answer: (B)

Prioritizing client orders over the broker’s own or internal orders is the central obligation here. When internal orders receive preferential treatment and a client’s order is executed afterward, the client’s order is not given the priority it deserves. That undermines fair, timely execution and conflicts with the duty to put clients’ interests first in trade handling. While conflicts of interest and loyalty concerns can arise in other situations, this specific scenario hinges on the proper sequencing of orders. So, this violates the Priority of Transactions standard.