Banking

Question 1

Who uses direct market access

Answer 1

Big companies, as this is more expensive

Question 2

What is the difference between service and discount brokers

Answer 2

Discount brokers are cheaper

Question 3

Central security deposit

Answer 3

A financial organisation that take cares of holding bonds stocks and securities

Question 4

Which of the following is true about CSDs?

Answer 4

Shares bought by investors are stored in the Demat account opened with the CSD. Most CSDs allow nomination facility

Question 5

Do stock exchanges provide a regulated env?

Answer 5

yes

Question 6

Clearing house

Answer 6

Intermediary between buyer or the seller, make fluent trading possibility

Question 7

The Forex market is what market?

Answer 7

OTC market

Question 8

Can a stock exchange can operate futures and options market together

Answer 8

Yes

Question 9

Open intrest

Answer 9

number of bought and sold held by different people

Question 10

Cost of carry

Answer 10

Difference between future price and spot price

Question 11

what is a CEP, and what does it do?

Answer 11

Complex Event Processing Engine : handles the automation of monitoring of prices, trading decisions, and execution of orders.

Question 12

Trading system use what time frame

Answer 12

1 nanosecond for computer

Question 13

What happens in order manager

Answer 13

Platform specific risk analyser, size of orders, position of orders, total buys & sells

Question 14

What happens in CEP

Answer 14

Strategies specific risks are analysed in the central exchange processing unit

Question 15

Traders app

Answer 15

Execution and P&L

Question 16

Who sends data where

Answer 16

Data vendor send straight to storage server

Question 17

live data

Answer 17

live data exchange straight to the CEP and also for Traders application .

Question 18

If you connect a quantified news feed to your automated trading system. To which module is this connected?

Answer 18

CEP or market data adapter (MDA)

Question 19

What is the function of the data normalizer in the Market Data block?

Answer 19

Increases the cohesion of entry types, leading to cleansing.

Question 20

What is the correct rudimentary (i.e. with non-essential segments clipped away) flow of information during the execution of an automated algorithm?

Answer 20

The data from the exchange is received by the MDA, which passes it on to the CEP, where the strategy resides. CEP then sends instructions to the OM to send/cancel or modify orders. The OM has a two-way communication with the exchange.

Question 21

FIX protocol adaptors may be incorporated into which modules?

Answer 21

Market data adaptor and order manager.

Question 22

What is dematerialisation and rematerialisation

Answer 22

Physical securities into digital is known as dematerialisation

Question 23

What is FIX

Answer 23

FIX (Financial Information Exchange)