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CISI Technology in Investment Management. > Technology in Investment - 2023 CISI Qs + Final cards for monday from all chaps > Flashcards

Technology in Investment - 2023 CISI Qs + Final cards for monday from all chaps Flashcards

1
Q

What time frame does a firm have to amend data that is incorrect from a client?

  • 20 Days
  • 30 Days
  • 40 Days
  • 50 Days
A

30 Days

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2
Q

What is the maximum timeframe a firm can hold a clients data in line with the GDPR?

  • Clients discretion
  • 14 days
  • Client sensitive data should never be stored internally
  • As long as it needs
A

As long as it needs

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3
Q

What level of help desk is used to prioritize calls?

Level 1
Level 1 & 2
Level 2
Level 4

A

Level 1

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4
Q

What is the purpose of Statutory Reporting?

Post trade requirement
Pre trade requirement
Produce a firms balance sheet and P&L account
Produce a firms transaction reports

A

Produce a firms balance sheet and P&L account

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5
Q

What is settling within tolerance?

Slight difference in cash considerations on the trade instructions
Slight difference in cash considerations and the settlement amount
Slight difference in cash considerations on the trade amount
Slight difference in the buy and sell price of a bond

A

Slight difference in cash considerations on the trade instructions

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6
Q

What is the security layer for SWIFT?

SWIFTNET
SWIFTNET LINK
SWIFTNET LINK PKI
SWIFT SECURE

A

SWIFTNET LINK PKI

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7
Q

What is consideration?

Principal amount + Accrued interest + Commission
Principal amount + Accrued interest + Commission + Tax Fees and charges
Principal amount + Accrued interest + Commission + Clearing house fee
Principal amount + Accrued interest + Commission + Fees and charges

A

Principal amount + Accrued interest + Commission + Fees and charges

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8
Q

What is the principal for equities?

Share sell price x Share buy price
Market share / Price of equity
Number of shares x Market dislocation
Number of shares x Share Price

A

Number of shares x Share Price

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9
Q

What is the maximum percentage of a transaction that FFI’s can withhold aligning with the FATCA?

20%
30%
40%
60%

A

30%

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10
Q

What instruments are trade repositories involved with

Bonds
Government bonds only
OTC Derivatives
Products sold in a MTF

A

OTC Derivatives

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11
Q

How often do you record bonds and equities in general ledger?

End of day, daily
Weekly
Within a minute of the transaction confirmation
Monthly

A

End of day, daily

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12
Q

What is the difference between transaction reports and trade reports?

Transaction reports are public and for regulators and use an ARM whereas Trade reports are for private dissemination and use an APA

Transaction reports are private and for regulators and use an ARM whereas Trade reports are for public dissemination and use an APA

Transaction reports are private and for regulators and use an APA whereas Trade reports are for public dissemination and use an ARM

Transaction reports are not required under MiFID 2 whereas Trade reports are required under section 21 of MiFID and are publically available

A

Transaction reports are private and for regulators and use an ARM whereas Trade reports are for public dissemination and use an APA

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13
Q

Who manages SQL performance?

Chief Technology Officer
Chief Information Officer
Back end developers
Database Administrators

A

Database Administrators

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14
Q

How often should Business Continuity Plans be tested?

Bi-Annually
Dependent on size of the business, the FCA recommend every 3 years for large firms and bi-annually for smaller firms
Annually
Quarterly

A

Annually

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15
Q

For PRINCE 2, what examinations would the project manager have to sit?

foundation exam and practitioner exam
PRINCE applications and foundations exams
Foundation exam and a practical test conducted by an approved PRINCE 2 assessor
Foundation exam and a three year probation period

A

foundation exam and practitioner exam

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16
Q

What is the PTM Levy?

Transaction below 10,000
Transactions above 10,000
Transactions above 100,000
Transactions below 100,000

A

Transactions above 10,000

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17
Q

What’s penultimate step of vendor assessment?

CTO Sign off
Issuing RFP
Negotiation and place orders
Development of business continuity plan (BCP)

A

Negotiation and place orders

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18
Q

What are the key benefits to STP?

reduce systemic and op risk, improve trade matching, minimise op cost, improve customer service
reduce systemic and op risk, improve certainty, minimise op cost, improve customer service, less manual input
reduce systemic and op risk, improve certainty, minimise op cost, improve customer service
reduce systemic and op risk, improve certainty, minimise op cost, improve customer service, more trades can be processed

A

Reduce systemic and op risk, improve certainty, minimise op cost, improve customer service

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19
Q

Which key individual is most likely to interact with OIECs

Fund manager
Wealth manager
Project Manager
Financial Advisor

A

welf manager init

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20
Q

How often are bonds and equities recorded in the General Ledger?

as and when business events occur
quarterly
When a confirmation is received from the CSD
annually

A

as and when business events occur

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21
Q

in regards to a vendor what is the process after selecting the project team?

Specify requirements
Evaluate responses
Send RFI
Complete KYC

A

Specify requirements

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22
Q

What is Mifir/EMIR/STFR?

A

Regualtory frameworks in the EU

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23
Q

What does the “Total Count Method” ensure?

That all the safe custody assets be counted and reconciled on the same date
That all the safe custody assets are counted by using a reference data repository
That all the safe custody assets are counted and reconciled on the settlement date
That all the safe custody assets are counted and reconciled at the same time

A

That all the safe custody assets be counted and reconciled on the same date

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24
Q

What is the COBS rule?

Rule 2.1 states the purpose of the rule set as a whole, which is to ensure that firms always act honestly, fairly and professionally in accordance with the best interests of their clients.

they insist that if a firm is physically holding assets that belong to clients then these assets must be recorded under CASS

A

Rule 2.1 states the purpose of the rule set as a whole, which is to ensure that firms always act honestly, fairly and professionally in accordance with the best interests of their clients.

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25
Q

What does the “Rolling stock” method ensure?

A
  • all of a particular safe custody asset are counted and reconciled as at the same date, and
  • all safe custody assets are counted and reconciled during a period of six months.
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26
Q

What is the main consideration for PMBOK

Project decision and exam execution
Project initiation and exam essentials
Project initiation and exam essentials
Project essentials and exam revision

A

Project initiation and exam essentials

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27
Q

What is the penultimate step of vendor assessment?

Specify requirements
Evaluate Vendors
Send RFI
Complete KYC

A

Evaluate Vendors

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27
Q

One potential negative of best-shoring over near shoring?

Dispersion
Branding
Fragmentation
Costs of setting up multiple operation bases

A

Fragmentation

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28
Q

What are FOP Requirements

Secondary Authorization
Primary Authorization
Free of Payment regulations must be met
DvP must be done beforehand

A

Secondary Authorization

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29
Q

What is a configuration origin code?

Tells user of general ledger which system produced the transaction
Tells user of general ledger which system produced the trade
Tells user of general ledger which system produced the identifier code
Tells user of general ledger which code to use to settle a transaction

A

Tells user of general ledger which system produced the transaction

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30
Q

What date should bond issuers use to determine who receives the coupon?

Trade
Settlement
Consideration
Record

A

Record Date

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31
Q

What is the prohibited asset class in an OTF?

Equites
Bonds
Derivatives
Exotic Products

A

Equites

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32
Q

What does the CUNM mean in a settlement notification?

Cumulative trade
Trading error
Trade matched
Trade Unmatched

A

Trade Unmatched

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33
Q

What is traded on ICE Futures Europe:

A
  • Futures and options
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34
Q

What are the names of the ledgers in the general ledger

Assets, Liabilities, Equity, Revenue, Expenses, Costs
Assets, Liabilities, Costs, Revenue,
Assets, Liabilities, Equity, Revenue, Expenses
Assets, Liabilities, Equity, Revenue, Expenses, Repository

A

Assets, Liabilities, Equity, Revenue, Expenses

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35
Q

What has been implemented to ensure hardware.

service level agreements (to ensure consistency)
RFPs
RFIs
Transaction reports

A

service level agreements (to ensure consistency)

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36
Q

What is the correct accounting equation?

Assets = Liabilities - Shareholders’ Equity
Assets = Liabilities + Shareholders’ Equity
Assets = Liabilities - Equity price
Assets = Liabilities - Portfolio adverts

A

Assets = Liabilities + Shareholders’ Equity

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37
Q

What is an equity Contract For Difference (CFDs)

A

contract between buyer and seller stipulating that the seller will pay the buyer the difference between the current and future value of the equity at an agreed date.

Visa Versa if negative

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38
Q

What are the three types of FX Transactions

A

spot - quoted by bank, T+2 - T+7, delivered on settlement date

forward -predetermined agreement beyond 7 days of tradedate

fx swap - agree swap for period of time and reverse transaction at a later date.

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39
Q

An organization that uses advanced investment strategies such as leveraged trading, long short and derivative positons in both domestic and international markets with the goal of generating higher returns is known as:

Robo-investment manager
A hedge fund
A wealth manager
Investment Bank

A

A hedge fund

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40
Q

What is the ‘Settlement date of a bond’

The date on which the investor should pay the consideration of the trade, take legal ownership of the instrument
The date that the trade was carried out
The date that the coupon is paid
The date on which the investor should pay the consideration of the trade, take legal ownership of the instrument. Should be the same as the value date, but there may be a delay

A

The date on which the investor should pay the consideration of the trade, take legal ownership of the instrument. Should be the same as the value date, but there may be a delay

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41
Q

What are the Key principles of automation? (5)

A

a transaction is entered into system only once

automated interfaces between systems so they can all keep track of transactions

trade processing should be in set stages each depending on the conclusion of previous stage

Manual intervention avoided as much as possible

above principles apply to all firms involved in the transaction

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42
Q

What 3 benefits do equity Contract for Difference (CFDs) offer investors?

A

investors to take long or short positions with:

no fixed expiry date or

contract size.

UK investors avoid stamp duty

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43
Q

Blood of industry

A

Criticality of data.

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44
Q

What is prudential regulation

A

concerned with financial soundness of regulated financial services firms.

Preventing investors and the economy from loss

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45
Q

What is the certification regime

A

Applies to ‘Material Risk Takers’

Have identified all certified individuals
-Have assessed them as fit and proper

-Have assessment of fitness of staff

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46
Q

Three Technological implications for the Senior Managers & Certification Regime (SM&CR)

A

All senior managers statements of responsibilities

Responsibilities map

Details of the regulatory approvals

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47
Q

handling of client assets (3 rules)

A

Record-Keeping
- Segregation
- Reconciliation

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48
Q

Reporting percentage?

A

Any move of 10% or more in a portfolio must be reported within 24 hours to the investor

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49
Q

What records are used to monitor market abuse

A

Post trade transaction reports via ESMA

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50
Q

Firms must provide confirmation details to the retail clinet:

In real time
On the trade date
On trade date +1
On trade dare +2

A

Trade date +1

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51
Q

Trade reports are near real-time broadcasts of trade data primarily aimed at:?

Detection of insider dealing
Market transparency
Detection of insider dealing & market abuse
Detection of market abuse only

A

Market transparency

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52
Q

Which of the following is correct regarding the segregation of duties?

Seg of duties attempts to limit operational errors
Seg of duties attempts to limit tech errors
Seg of duties attempts to limit authorized access to applications and underlying data
Seg of duties attempts to limit trading and accounting errors

A

Seg of duties attempts to limit authorized access to applications and underlying data

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52
Q

In stock lending, dividend of the loan are paid to the borrower. What should the borrower do with these payments?

Pay it to lender
Entitled to keep dividend
Borrower is entitled to keep the dividend but cost of loan is adjusted
Borrower retains the amount and pays the equivalent back at the end of the loan

A

Pay it to lender

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53
Q

Systems life cycle - What step is most likely to trigger a change of policy from completely replacing an old system to simply updating it?

Analysis
Fact finding
Feasibility study
Design investigation

A

Feasibility study

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54
Q

Main risk associated with FoP

Credit risk
Operational risk
Regulatory Risk
Market risk

A

Credit risk

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55
Q

To which firms do the requirements of MiFID 2 apply to?

Firms in the EU
Firms in the EEA
Globally regulated entities
Firms in the EU and firms who are outside the EU but have operations in the EU

A

Firms in the EEA

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56
Q

When a firm uses PRINCE 2, who will normally chair the project board at the start stage

Project Sponsor
Project Manager
The firms CEO
Firms head of IT

A

Project Sponsor

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57
Q

What is the idea behind ESMA

Establishment of an EU financial market watchdog
Provides advisory services to EU regulators
Sets obligatory requirements for prudential regulation of security firms within the EU
Twerkin

A

Establishment of an EU financial market watchdog

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58
Q

which of these is MOST likely to be built in-house, rather then brough from a software vendor

Complex general system
Help desk support system
Algorithmic trading software
A SWIFT Gateway

A

Algorithmic trading software

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59
Q

Info held in an IT system, in respect of individual ledger accouts should include:

Reference data items
Reference data items and balance information item
Reference data items, balance information items and transactions items
Reference data items, balance information items, transaction items and settlement agent items

A

Reference data items, balance information items and transactions items

60
Q

What is the main risk that firms face if they send a free of payment (FoS) instruction

Reg risk
Credit
Op
Counterparty

A

Credit

61
Q

Between trade date and settlement date. what does the settlement system receive from the settlement agent to allow back office staff to monitor trades?

Trade status
ISIN and instrument classification data
Interest accruals
Confirmations of RSDT payment types

A

trade status

62
Q

Which software development methodology is based on the principle that unit tests are written first and fail until the code is written?

Waterfall
Agile
JAD
RAD

A

Agile

63
Q

Why is a record date an important feature of a secondary market bond trade?

To determine who will receive the coupon
To determine whether accrued interest should be paid or not
To ensure price of the bond can be correctly reflected in portfolio valuations
To permit the coupon to be correctly apportioned between seller and purchaser

A

TO determine who will receive the coupon

63
Q

An advantage over insourcing over outsourcing is:

Improved employee loyalty
Achieving complete information security
Improved credit risk management
Increased ability to comply with regulation

A

Improved employee loyalty

64
Q

What is a distributed edger?

A

Shared and synchronised across multiple sites. Any changes to the system will be copied to all versions in milliseconds

64
Q

Step 1 of Botnets?

A

Open a dodgy email with infected attachment inside

64
Q

What is a systematic internaliser?

A

Under MiFID, a firms that executes orders from its own book and not part of any other exchanges.

65
Q

Step 2 of Botnets?

A

Command and control server

66
Q

Step 3 of Botnets

A

Malware connects to other computers

67
Q

Step 4 of Botnets

A

Perform criminal activities

68
Q

What is attribution analysis?

A

Calculation of why a portfolio had a certain return against a benchmark

69
Q

What product does EMIR cover?

Bond
Futures
OTC Derivatives
Options

A

OTC Derivatives

70
Q

What is a Designated Investment Exchange? (DIE)

A

is an overseas exchange that does not carry on a regulated activity in the UK and is not a regulated market. May be included on the FCAs list of DIEs

71
Q

What is a Recognized Overseas Investment Exchange (ROIE)

A

Based outside the UK but admits UK banks and firms as members and is recognized by the FCA. Like NASDAQ

72
Q

What is a Recognized Investment Exchange (RIE)

A

Based in the UK and recognized by the FCA

73
Q

Does an order driven system have any market makers?

Yes
No
Only on tuesdays

A

No

74
Q

What is a quote driven system?

A

Market makes quote two-way price in each of the products. Identity known. Illiquid instruments

75
Q

Does an quote driven system have any market makers?

Yes
No
Only on tuesdays

A

Yes

76
Q

What is an order system?

A

Buy price matches sell price. Identity is not known. Liquid instruments

77
Q

MiFID time is done on?

Real time
T+1
T+2
Whenever they can be arsed

A

real time

78
Q

Who does the EUI service

EU and Ireland
EU and UK
EU and firms outside EEA with EU business
Michael van gerwen

A

EU and Ireland

79
Q

Basis points cover what product?

Derivatives
OTC Derivatives
Futures/Options
Bonds

A

Bonds

80
Q

Basis point

1/10
1/100
1/1000
1/10000

A

1/100

81
Q

X per lot what product?

Derivatives
OTC Derivatives
Futures/Options
Bonds

A

Futures/Options

82
Q

What is an agent order?

A

Forwarded to investment exchange

83
Q

What is principal order?

A

Comes off own book

84
Q

What happens at a stop loss amount?

Buy or sell at a predefined limit
Buy at predefined limit
Sell at predefined limit
Buy at what ever price

A

Buy or sell at a predefined limit

85
Q

What is Black box testing

Only accesses the software through the same interfaces as the end user
Logic traced manually through small sets of code
Access to the source code and test that
Mix of white and black testing

A

Only accesses the software through the same interfaces as the end user

85
Q

What is Free of Payment (FoP)

A

Settlement methodology where cash and securities are not linked to one another. Opposite of DvP

86
Q

What is White box testing

Only accesses the software through the same interfaces as the end user
Logic traced manually through small sets of code
Access to the source code and test that
Mix of white and black testing

A

Access to the source code and test that

86
Q

What is Grey box testing

Only accesses the software through the same interfaces as the end user
Logic traced manually through small sets of code
Access to the source code and test that
Mix of white and black testing

A

Mix of white and black testing

87
Q

What is Code walkthrough

Only accesses the software through the same interfaces as the end user
Logic traced manually through small sets of code
Access to the source code and test that
Mix of white and black testing

A

Logic traced manually through small sets of code

88
Q

What do the EUI issue?

Investment mandate
Help guide
DEX
FEDEX

A

DEX

89
Q

Which software is compulsory to make use of a prototype

Waterfall model
RAD Model
JAD Model
Agile Model

A

RAD Model

90
Q

What of the following iis always traded by the sell side firm in an agency capacity?

FX products
UK equities
Listed Options
Gilts

A

Listed Options

91
Q
A
91
Q

Firms that are Member-Administrated Closed User group can use the SWIFT network to send and receive?

FIN Messages with SWIFT standard
XML messages with SWIFT standard
All messages with SWIFT standard
All messages without SWIFT standard

A

All messages without SWIFT standard

91
Q

What are the four elements to the Reference data challenge?

A

Gather, store, updating and utilizing appropriately

92
Q

The FCA rules require client agreements to be held:

In paper form
In paper or electronically
In electronical form
On a durable medium

A

Durable medium

92
Q

What does ISO 9126 deal with?

A Project documentation standards
B Project management standards
C Software development standards
D Software evaluation standards

A

D - Software evaluation standards

ISO 9126 deals with the evaluation of software

92
Q

Mark to market of a firm’s portfolio would most likely use which method to establish the profit and loss on a portfolio?

A First in; first out
B Last in; first out
C Value at risk
D Weighted average prices

A

Weighted average prices

The most widely used method of calculating profit and loss as part of a mark to market exercise is to use weighted average prices.

93
Q

Which of the following would you NOT expect to be included in a message confirming the trade has been settled?
A Stock amount
B Security
C Price
D Consideration

A

A settlement advice will detail the stock that has been delivered or received and the amount of cash paid or received but is unconcerned with the price the trade was executed at.

C Price

93
Q

Which of the following would you expect to be recorded as a debit in the general ledger?
A Gains
B Liabilities
C Inventory
D Shareholders equity

A

C Inventory

Inventory is recorded as a debit in the general ledger

93
Q

The success of Synchronise and stabilise (or sync and stabilise) as a software development lifecycle is dependent on:

A all teams to be synchronised
B the appointment of a senior responsible owner
C clearly defined project management
D teams being close proximity to each other

A

all teams to be synchronised

Synchronise and stabilise (or sync and stabilise) is an SDLC in which teams work in parallel on individual application modules. There is a requirement for all teams to synchronise their code with the other teams regularly and debug or stabilise it regularly throughout the development process.

94
Q

Firm A executes trades for clients on SETS and is a non-clearing member of London Clearing House. It will not need access to the systems of which entity?

A Euroclear
B Central counterparty
C London Stock Exchange
D Aquis

A

B Central counterparty

A firm that does not clear its own trades is known as a non-clearing member (NCM) or dealer member. It needs connectivity to the exchange’s systems but not to the clearing house’s / central counterparty’s systems. A General Clearing Member (GCM) needs connectivity to both entities’ systems.

95
Q

Which stage of SDLC would be used to test whether an application performed as expected?

A Analysis
B Design
C Implementation and review
D System specification

A

C Implementation and review

Implementation and review involves setting and installing the new system including writing code; training staff; monitoring for initial problems and regularly maintaining afterwards.

96
Q

Which type of client has the greatest protection under the regulatory system?
A Eligible counterparty
B Private investor
C Professional client
D Retail client

A

The correct answer is: D - Retail client

97
Q

You have been asked to store standard settlement dates for a range of instruments on an instrument masterfile. What standard settlement convention would you record for a FX trade?
A T+1
B T+2
C T+3
D T+10

A

The correct answer is: B - T+2 Explanation
Standard settlement conventions are; Bonds T+1; FX and money market T+2; Equities T+2.

98
Q

ABC Company is an investment management firm and outsources its IT functions to a specialist supplier. An advantage of this strategy would be:

A It does not need to retain its staff who know the firm’s existing systems
B It need not concern itself with information security
C It saves documenting current working practices
D Opportunity to replace outdated technologies

A

The correct answer is: D - Opportunity to replace outdated technologies

The company to which it outsources may be in a better position to replace outdated technologies and working methods.

99
Q

In which type of testing would you manipulate the testing environment?

A Black box
B Grey box
C White box
D V model

A

The correct answer is: B - Grey box

In grey box testing, the test environment is manipulated through configuration files or data to establish a state of the product suitable for testing or verification.

100
Q

The stock record would typically NOT record positions at value date for which of the following types of assets?

A Bond purchase
B Equity purchase
C Money market deposits
D Repos

A

Money market deposits

101
Q

Which is the linear sequence development methodology?
A Fountain
B JAD
C Spiral
D Waterfall

A

The correct answer is: D - Waterfall

102
Q

When a firm is acting as a broker it is performing which trade?

A Agency trade
B Aggregated trade
C Principal trade
D Proprietary trade

A

The correct answer is: A - Agency trade

103
Q

Front office dealing applications need to be able to route orders to different execution venues as a result of which provisions in MiFID?

A Best execution requirements
B MTF and systematic internaliser rules
C Pre-trade transparency rules
D Post trade transparency rules

A

The correct answer is: A - Best execution

MiFID rules require firms to determine which execution venues they will use in order to obtain best execution of client trades.

104
Q

When a sell-side firm acts as principal, its revenue consists of:

A. Commission
B. The difference between the buying price and the selling price
C. A specially negotiated fee
D. A fixed percentage of the deal value

A

B. The difference between the buying price and the selling price

105
Q

Which of the following is a form of iterative/incremental software development?

A. Waterfall model
B. End-user development
C. Fountain model
D. Agile model

A

A. Waterfall model

106
Q

Data proximity is a concern that many firms have about cloud computing.

Data proximity means that:

A. the firm’s data may be held on the same premises as that of a competitor
B. the firm does not know where the data is held
C. the firm’s data may be held on the same database as that of a competitor
D. the firm is unable to tell its regulator where its data is held

A

C - close proximity of competitor

107
Q

DaimlerChrysler shares are listed on stock exchanges in seven countries. How many ISIN codes are allocated to DaimlerChrysler shares?

A. One
B. Seven
C. Four
D. Three

A

Uno

108
Q

Which of the following is a wholesale market activity associated with an investment bank?

A. Execution-only stockbroking
B. Life assurance
C. Mergers and acquisitions
D. Private banking

A

M n a

109
Q
  1. You have made the decision to outsource the development of a new business application. Which of the following is likely to be the most suitable method of outsourcing this work?

A. Near-shoring
B. Inshoring
C. Offshoring
D. Best-shoring
E. Geordie shoring

A

Best shoring

110
Q

Which of these items is not contained in the header message of a SWIFT FIN (MT series) message?

A. The first transaction record
B. The destination BIC code
C. The sender’s BIC code
D. The message type

A

Transaction record

111
Q

The source code for a particular application cannot be found. Which of the following techniques have been developed to prevent this type of problem?

A. Software development life cycle
B. Change control methodology
C. Availability management
D. Service level management

A

Change control

112
Q

Which of the following is the ISO standard for software evaluation?

A. ISO 9000
B. ISO 9001
C. ISO 9001:2000
D. ISO 9126

A

D

113
Q

What is the main function of a trade repository?

A. To collect records of OTC derivatives trades in order to provide regulators with information about firms’ risk exposure
B. To store records of securities trades in order that a regulator can periodically check firms’ compliance with the conduct of business regulations
C. To fulfil the reporting and transparency requirements of multilateral trading facilities and systematic internalisers under MiFID II
D. To store records of all securities trades so that regulators can monitor the markets to track insider dealing and other forms of market abuse

A

A

114
Q

Which regulator has the responsibility to enhance the protection of investors and reinforce stable and well-functioning financial markets in the European Union (EU)?

A. The Basel Committee
B. The European Securities Markets Authority
C. The European System of Financial Supervision
D. The European Banking Authoritye

A

Esma

115
Q

In relation to disaster recovery, what is ‘log shipping’?

A. An automated procedure for backing up databases on two servers in different locations
B. An approach to maintaining system availability whereby all transactions are written to the production server and a standby server at different locations simultaneously
C. Maintaining a spare server at a standby location that is configured similarly to the primary server and is running the same version of the operating system, database and application software, with all the same service packs applied
D. A testing method aimed at determining the feasibility and compatibility of back-up facilities and procedures and ranking critical needs and functions

A

A

116
Q
  1. Which of the following statements about the MT500 series of messages is true?
    A. It deals with securities messages and is based on ISO 7775
    B. It deals with foreign exchange and money market messages and is based on ISO 15022
    C. It deals with foreign exchange and money market messages and is based on ISO 7775
    D. It deals with securities messages and is based on ISO 15022
A

D

117
Q

What time frame does a firm have to amend info if a client says it is inaccurate

20 days
30 days
40 days
50 days

A

30

118
Q

What is the min capital requirement under MiFID 2 (%)

1-8
8
8-15
15

A

8-15

119
Q

In regards to a vendor what is the process after selecting the project team?

Specify requirements
Send requirements
Send RFP
Evaluate vendors

A
120
Q

What is code walkthrough?

a manual testing technique where program logic is traced manually using a small set of test cases to analyse the programmer’s logic and assumptions.

in white box testing the tester has access to the source code and can write tests specific to the area of change.

is is a cursory examination of all of the basic components of a software system

Holding the testers hand during User Acceptance Testing

A

a manual testing technique where program logic is traced manually using a small set of test cases to analyse the programmer’s logic and assumptions.

121
Q

Who do database administrators report to?

head of technology
project manager
head of production support
head of technology security

A

head of production support

122
Q

What is joint development

A
  • It may be able to undertake ‘joint developments’ for more than one customer in the same industry so that the capital cost of a large software development project is shared by more than one customer.
123
Q
  1. In an IT department who is responsible for reviewing back up / recovery strategies?
  • Systems developer
  • Business analyst
  • Database administrator
  • Help desk analyst
A

Database administrator

124
Q

Which report would you expect to contain portfolio benchmark performance data against the FTSE 100?
- Capital cash
- Corporate actions
- Periodic statement
- Statement of assets in custody

A

Periodic statement

125
Q
  1. Which of the following is a reference data item:
    - Open balance
    - Date of transaction
    - Money value of transaction
    - Currency of postings made
A
  • Currency of postings made
126
Q
  1. A maturity ladder will show cash movements covering how many working days:
    - 5
    - 3
    - 7
    - 10
A

5

127
Q
  1. If a Fee of Payment delivery is to be made, what needs to be conducted:
    - A client credit search
    - Collateral amount calculation
    - Secondary authorisation
    - Fixed percentage added
A

Secondary authorisation

128
Q
  1. Which GDPR principle is a firm in breach of if it retains data for longer than required?
  • Data minimisation
  • Storage limitation
  • Purpose limitation
  • Integrity and confidentiality
A

Purpose limitations

129
Q
  1. Which date do bond issuers determine who receives the coupon payment:
    - Value date
    - Trade date
    - Record date
    - Coupon date
A

Record date

130
Q
  1. ICE Futures Europe facilitate trades for:
  • US equities
  • US bonds
  • OTC derivatives
  • Futures and options
A

D

131
Q
  1. Specialist reconciliation systems are deployed to compare settlement records with:
  • Front office systems
  • Back office systems
  • Front office systems, 3rd party systems
  • Front office systems, externally transmitted transactions details
A

D

132
Q
  1. Which support team makes decisions in relation to overall resource issues?
  • Help desk
  • Management
  • Service specialists
  • Analysts
A

Help desk

133
Q
  1. What aspect of buy / sell orders is affected with algorithmic trading systems:
    - Size
    - Timing
    - Size and timing
    - Neither size or timing
A
  • Size and timing
134
Q
  1. When equities are traded on SEAQ which of the following applies:
    - No credit risk
    - No central counterparty
    - Novation delay
    - Carried out by LCH Clearnet
A
  • No central counterparty
135
Q
  1. Which areas of a securities company’s activities should be risk assessed by the disaster recovery planning committee:
    - Those deemed high-risk
    - Those that are business critical
    - All functional areas
    - Functional areas that interface directly with clients
A

Busienss critical

136
Q
  1. Which area of financial services are closely associated with open ended investment companies:
    - Banking
    - Custody
    - Wealth management
    - Fund management
A

Wealth management

137
Q

I believe in you!

A

CISI Technology in Investment Management. (20 decks)

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