Kazuya Kato, CFA, is a widely followed economist at a global investment bank. When Kato opines on economic trends, markets react by moving stock valuations considerably. When Kato receives information of a temporary oversupply of rare earth metals, he issues a forecast that price trends for rare earth metals will be down significantly on a long-term basis. Kato also secretly sells his report to a widely followed Internet site. Prior to issuing this forecast, Kato emailed all portfolio managers at his bank with a copy of his report indicating that his opinion would be reversed shortly so there will be trading opportunities. Kato least likely violated which of the following CFA Institute Code of Ethics and Standards of Professional Conduct?
B is correct because the Priority of Transactions standard has not been violated as it relates to investment transactions for clients and employers having priority over Member or Candidate transactions. There is no indication in this case that transactions have occurred as a result of the report being issued by the economist. Although it is reasonable to expect there will be transactions, it is only when these happen that a violation will have occurred.