Not all market-timing activities are alike, and the U.S. Court of Appeals for The Third Circuit has ruled that there are times when the otherwise illegal activity is allowed. The case centers on charges by trustees of Windsor Securities Profit-Sharing Plan of Ardmore, Pa., that ReliaStar Life Insurance violated its contract by canceling amendments to policies that allowed Windsor to trade daily. ReliaStar canceled the policy when the mutual fund scandal involving late-timing became news four years ago.

The appellate court reversed a lower court ruling which held that late-trading provisions violate securities laws and therefore voided the policies. Investment News reports that the appeals court, which also noted that “there is no legal basis for claiming market timing is contrary to public policy,” reinstated amendments that allowed for legal market timing.