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Ethics and Integrity interview question about Ethical Decision-Making for Senior-Level Sales and Trading

What would you do if you noticed a pricing discrepancy in a bond trade that could result in a significant profit for your firm?

Sales and Trading

Ethics and Integrity

Asked at

JPMorgan Chase

Difficulty :

Hard

Explanation

This question tests your ethical judgment and ability to handle high-pressure situations. Recruiters want to see how you balance profitability with professional integrity and regulatory compliance. Common pitfalls include suggesting unethical actions or failing to demonstrate a clear decision-making process. A strong answer includes adherence to ethical standards, consultation with relevant parties, and alignment with company policies. Preparation involves reviewing ethical scenarios and regulatory guidelines in trading.

Answer Example

I would immediately flag the discrepancy to the compliance team and my supervisor to confirm whether the pricing issue is legitimate or a systemic error. If confirmed to be a legitimate opportunity, I would proceed with the trade, ensuring all actions comply with regulatory standards. However, if it’s an error, I would refrain from exploiting it to protect the firm’s reputation and maintain ethical standards. A similar scenario arose during an internship, where I escalated a potential pricing error, saving the firm from regulatory scrutiny.

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