Series 24 -- Trading and Market Making Flashcards

1
Q

NYSE REG – before orders are crossed, must be offered to crowd at ____ above the current bid.

A

1 cent

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2
Q

NYSE Rule 127 defines a block of stock as at least ___ shares or $____ or more

A

10,000 shares, $200,000.00

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3
Q

NYSE Market on close (MOC) orders, unless there is an imbalance, cannot be entered after ___:_____

A

3:45PM

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4
Q

Delisting requires approval of Board of Directors and form ___ filing with ___.

A

Form 25, SEC

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5
Q

A security is considered delisted ___ days after filing.

A

10 Days

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6
Q

OTC EQUITY – an OTC equity security is generally considered to be any equity security that is not ____ stock traded on a ________

A

NMS, National Securities Exchange

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7
Q

NASDAQ listings are _______ and ________equivalent securities.

A

equity and equity equivalent securities

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8
Q

NASDAQ min bid price of ____ per share Global Select Market listing.

A

$4

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9
Q

NASDAQ listing ____ round lot shareholders.

A

400

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10
Q

NASDAQ MM Registration - Application ___ upon approval

A

effective

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11
Q

NASDAQ MM Registration – Must enter quotes within ___ business days

A

5

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12
Q

NASDAQ MM Registration – Excused withdrawl for cause, requires ___ Approval

A

NASDAQ

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13
Q

NASDAQ MM Registration – Voluntary termination for NASDAQ and ADF market makers requires ____ day wait before re-registration.

A

20 business day

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14
Q

VWAP – considers ____ of shares traded at each ___ level to determine average

A

number of shares, price level

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15
Q

VWAP computed by ___ divided by the number of shares traded

A

total dollar value traded

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16
Q

SHORT INTEREST REPORTING – reported ___ monthly for short positions in both ___ and ___ accounts

A

twice, customer and proprietary

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17
Q

SHORT INTEREST REPORTING reported on the ___ and the ___ day of the month

A

15th and last business day

18
Q

SHORT INTEREST REPORTING reported on trades that have ____ as of the reporting dates.

A

settled

19
Q

OATS – time sequence trail of orders from ___ to ___

A

entry to execution

20
Q

OATS applies to ___ and ___ equity securities

A

NASDAQ and OTC

21
Q

OATS Daily reports on an ___

A

order by order basis

22
Q

Trading Halts – NASDAQ indicators are T1 for _____, T2 for _____ and T3 for ____ window when quotes can be entered and trading can begin.

A

T1 = news pending
T2 = News Released
T3 5 minute window

23
Q

LULD mechanism is intended to prevent trades in _____ securities from occurring outside of specified _____.

A

NMS, Price bands

24
Q

ECN: Registered ___ that provides trading platform for extended hours trading.

A

ATS

25
Q

Markup Policy (5% policy) prospectus offerings

A

Prospectus offerings exempt

26
Q

Markup Policy (5% policy) – Calculated from inside market price for ____ competitive markets.

A

active

27
Q

Markup Policy (5% policy) – Applies to corporate and _____ debt

A

US Government

28
Q

Regulation NMS rule 611 prohibits trade throughs that occur when a firm executes a customer order at a price when a _____ is available in another market.

A

better price

29
Q

Regulation NMS rule 612 deals with minimum increments with regard to pricing. For stocks priced at ___ per share or greater, the min increment is ___.

A

$1.00/ one cent

30
Q

Regulation NMS rule 612 ___ pricing is permitted for stocks trading below $1.00

A

sub-penny

31
Q

Regulation NMS rule 605 requires market centers that trade listed and ______ securities to prepare _____ reports on execution quality.

A

NASDAQ, Monthly

32
Q

Regulation NMS rule 606 requires firms to disclose, in ____ reports, their routing methods that identify the market centers to which they route a significant percent of their _____ orders and any _____ for orderflow arrangements that exist.

A

quarterly, non-directed orders, payment

33
Q

LIMIT ORDER PROTECTION RULES – Manning Rule says firms cannot ______ of customer limit orders.

A

trade ahead.

34
Q

LIMIT ORDER PROTECTION RULES – If a market maker receives, as _____, a better price than unexecuted customer limit order, _____ must be passed along to the customer

A

principal, price improvement

35
Q

LIMIT ORDER PROTECTION RULES SEC Rule 604 – the display rule requires a ______ to display a customer order priced ______ than its current quote within _____ seconds of receipt.

A

market maker, better, 30 seconds

36
Q

OTC Market Regulation – Cannot trade ahead of block orders at that is _____.

A

front running

37
Q

OTC Market Regulation – Cannot adjust inventory in advance of non-public knowledge of issuance of research report: applies to ________

A

any security – no trading ahead of research reports.

38
Q

OTC Market Regulation – Interpositioning prohibited unless it results in better _____ for the customer

A

execution

39
Q

REGULATION SHO – mandates a short locate requirement prior to ______ of any security.

A

short sale

40
Q

REGULATION SHO – requires close out of fails to deliver in threshold securities after ___ consecutive settlement days (FINRA Rule ___)

A

13, 4320