Market Structure Flashcards
Which of the following best describes what happens if there is an error in the trade-matching process?
There will be a delay in the settlement
Clearing house clearing members who wish to act for themselves and their direct clients only are classified as:
Individual clearing members
Who is only able to clear trades on behalf of themselves and their clients?
Individual clearing member
Individual clearing member
The orders of both buyers and sellers of securities will be placed displaying the price at which they are willing to buy or sell
A cross trade occurs when:
A member conducts offsetting trades in the same security for two different clients
Which of the following is the best definition of exchange traded?
On any exchange
Which of the following commodities is traded on ICE futures Europe?
Energy
Which of the following is TRUE concerning block trades on ICE Futures Europe?
The trade does not have to be executed at the prevailing market price
Universal Trading Platform is used on which of the following exchanges?
Euronext Derivatives
Profit / loss = ticks moved x tick value x no. of contracts:
Profit / loss = ticks moved x tick value x no. of contracts:
When acting as an agent on behalf of a principal, an agent may:
Enter into contracts on behalf of their principal
Settle contracts using their own funds
Charge the principal commission
Allocate a proportion of trades to their own account
A trade published with a code K would be?
Block trade
Which of the following is TRUE of a block trade on ICE Futures Europe?
The counterparties are required to ensure the price represents fair value
The counterparties are required to ensure the price represents fair value
UCP
Which of the following is a characteristic of an Exchange for Physicals (EFP) contract?
It allows firms to trade in a physical market place
What actions are a non-clearing dealer member of an exchange permitted to do?
Trade for themselves only
Trade for themselves only
Price and time
Which of the following is a feature of Euronext’s Universal Trading Platform system?
Order driven
Which of the following are NOT functions of Universal Clearing Platform?
Risk management
Margining
What is a cross trade?
A security purchased by one client from another client who both use the same broker
In a trade registration system, when is a trade considered to be registered?
When it is ready for clearing
What is the main source of information for an exchange price feed?
Exchange trading systems
What is the best definition of kerb trading?
A trade carried out at the end of normal trading
A broker opens a position in the Nikkei 225 futures market on the CME and closes it on SGX. How is this described?
Mutual offset
Which of the following is a benefit of a block trade?
Prices can be agreed away from the order book
In an open outcry trade, who starts the process?
Customer
What is shown in the touch strip on electronic/screen-based trading systems?
Best bid/offer price
Execution of trades on an exchange for a non-member can be achieved via:
A broker dealer
EFP arrangements occur:
Ex pit
On which of the following systems do Euronext’s commodity products, such as white sugar, trade?
UTP
Which of the following is known as the trading system for ICE Futures Europe?
Connect
A floor dealer working on an open outcry exchange carries out trades on behalf of another brokerage house. Once the trade is done, the floor broker passes the trade back to the originating firm. This is called:
A give-up
In a traditional open outcry market who starts the order process?
The client
A floor broker working on an open outcry exchange carries out trades on behalf of another brokerage house. Once the trade is done, the floor broker passes the trade back to the originating firm. This is called:
Give-up
A firm who is a member of an exchange which can only trade on behalf of its clients is called:
broker
Which of the following systems allows a firm to allocate trades to the correct account?
UCP
The price at which an exchange of futures for physical (EFP) is agreed is:
The price agreed by the counterparties
Which of the following is the best definition of dual trading on exchange?
A member firm trades for its own account and that of a client irrespective of time
Exchange clearing members who wish to clear for themselves and their direct clients only are classified as:
Individual clearing members
On which of the following US exchanges would you find oil derivatives?
NYMEX
An exchange’s trade registration system has all of the following functions, except:
Trade settlement
What needs to be reported on an execution of a block trade?
Time
Price
Volume
Which of the following contracts is physically delivered?
Euro future
Who is only able to clear trades on behalf of themselves and their clients?
Individual clearing member
Individual clearing member
- Individual
All of the following are taken into account when prioritising orders on an exchange order book system, except:
Underlying asset
The minimum price movement on a futures contract is:
A tick