MCQ Chapter 5 Flashcards
What is reference data
Data used to ensure automation can run smoothly
What is a Ticker Symbol
5 letter used to identify specific publicly traded companies and the securities they issue
What is the ISDA Master Agreement
it sets out standard terms that apply to all the transactions entered into between those parties. The specific details of each transaction are outlined in a separate confirmation
How do parties typically modify the ISDA Master Agreement to suit their needs?
select one:
a. By negotiating the terms of each derivatives transaction individually
b. Through a manually produced schedule where certain options are selected
c. By rewriting the pre-printed form entirely for each new transaction
d. Using an online platform to digitally alter the terms in real-time
Through a manually produced schedule where certain options are selected
What type of unique identifier code is WMT.N?
Select one:
a. Reuters Identifier Code (RIC)
b. International Securities Identification Number (ISIN)
c. Committee on Uniform Security Identification (CUSIP)
d. Ticker
Reuters Identifier Code (RIC)
What is a settlement agent
CSDs, ICSDs and custodian banks may be collectively referred to as ‘settlement agents’.
Which of the following is NOT considered to be a technology requirement for the trade agreement process for a sell-side firm?
Select one:
a. The need to send affirmations and allocations to the sell-side
b. The need to send confirmations for all asset classes in which they trade
c. If active in foreign exchange and money markets, then confirmations received via ‘mutual exchange’ need to be matched automatically
d.The need to track the matching of confirmations and raise any errors as exceptions
The need to send affirmations and allocations to the sell-side
What is a secondary market activity
Once the security has been issued on the primary market, investors may buy and sell that security without the involvement of the issuer. This is known as ‘secondary market activity’
What is accrued interest
Interest that has built up but not yet been paid out to the investor
What type of unique identifier code is GB1234567890
a. International Securities Identification Number (ISIN)
b. Committee on Uniform Security Identification (CUSIP)
c. Reuters Identifier Code (RIC)
d. Ticker
international Securities Identification Number (ISIN). Starts with a GB (Country Code)
Who provides Settlement and custody services for the UK cash settled securities?
Question 17Select one:
a. LME Clear Ltd
b. Euroclear
c. London Clearing House
d. Clear Europe Ltd
Euroclear
Name of the unique identifier not given to an investment originating outside of North America?
Question 18Select one:
a. CUSIP Code
b. International Securities Identification Number (ISIN)
c. Legal Entity Identifier (LEI)
d. SEDOL (Stock Exchange Daily Official List) Code
CUSIP Code
Which of the following types of information does a market data vendor not provide?
Select one:
Pre-Trade - liquidity &; price discovery
Client account details
Trade execution and post-trade services
Pre trade - post analytics
Client account details
In a settlement system, which of the following would be considered as reference data?
Select one:
Client data
Trading books
Ticker Symbol
Client Data and Ticker Symbol
Client Data and Ticker Symbol
ABC Bank is finalizing a trade settlement with XYZ Corporation. The settlement agent has been instructed to accept payment on behalf of ABC Bank. The settlement involves a cash transaction in USD. What information is crucial for the settlement agent to process the payment correctly?
Select one:
The depot account code where the securities are held.
The nostro account code of ABC Bank for the USD transaction.
The trading party’s identity code.
The stock depot identification where the securities are delivered.
The nostro account code of ABC Bank for the USD transaction.
