CHAPTER 5

Question 1

Challenges of reference data

Answer 1

hard to store securely
hard to gather
make sure to utlisie correctly
have to always update

Question 2

Standing Settlement Instruction(SSI)

Answer 2

controls selection of which settlement agent trades in particular investments

Question 3

reference data repositories adv + dis

Answer 3

ensures consistency
may be fed from consistent and relaible sources
its maintained by a proper team
costly to initiate and maintain
needs to always be enhance and integrated

Question 4

accurate reference data is needed to?

Answer 4

calculate trade amounts
enrich trades with accurate info

Question 5

default settlement time?

Answer 5

T+2

Question 6

principle amount

Answer 6

quantity traded x price x price multiplier

Question 7

30/360

Answer 7

30 days in a month
360 days a year

Question 8

Actual/360

Answer 8

normal days in month but 360 days a year

Question 9

actual/365

Answer 9

actual calendara

Question 10

actual/actual

Answer 10

conventional calendar

Question 11

accrued intrest calculation

Answer 11

t/s x c/n

Question 12

BIC codes

Answer 12

unique identification codes of banks 8-11 digits

Question 13

IBAN codes

Answer 13

facilitates payments within EU

Question 14

LEI

Answer 14

global reference data system that uniquely identifies every legal entity
20 digits

Question 15

depot account

Answer 15

account with settlement agent that is used to record transactions and balances in securities amounts

Question 16

nostro account

Answer 16

account with settlement agent that is used to record transactions and balances in money amounts

Question 17

matching engines

Answer 17

both parties input trade details and it automates the matching
compares reports in real time and matches

Question 18

example of a matching engine

Answer 18

TRAX