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MTn99

MT300

MT670/671

to maintain the professional level of competence and the ethical standards of loyalty

to demonstrate the best ethical behavior in strict accordance with the content and spirit of The Model Code

to maintain the highest possible standards in their profession by constantly setting an example of propriety in business

Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should not be passed on in any circumstances.

Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should be reported to the regulator in order to provide warning of possible systemic problems.

You have a duty to warn counterparties but should make clear that the information is unsubstantiated.

ensure that compliance is carried out efficiently

set limits on borrowing in the short-term markets to fund long-term lending

report to the board of directors

Subject to local legal requirements, this matter is one for bank management to decide.

Bank management should encourage such activities because it allows banks to monitor the gambling habits of their staff.

Bank management should allow staff to deal for their personal account on a case to case basis.

14th December

15th December

17th December

Gives you the right but not the obligation to sell USD and buy JPY

Gives you the right but not the obligation to buy USD and sell JPY

Gives your counterparty the right but not the obligation to buy USD and sell JPY

The market value of bond collateral at the start of the repo at the clean price of the bond

The market value of bond collateral at the start of the repo at the dirty price of the bond

The amount of cash actually paid for collateral at the start of the repo plus repo interest

Effective Expected Potential Exposure

Effective Expected Price Earning

Effective Expected Payment Exposure

1.038579

1.038418

1.038421

0.9278-73

1.0784-78

1,0773-78

By agreement between the two counterparties, the trade must be cancelled as soon as practically possible since a rate amendment is prohibited.

The off-market rate should be adjusted as soon as possible to the appropriate current market rate and a new authenticated SWIFT confirmation sent immediately to the counterparty.

Nothing need be done, since once a trade is agreed to by the front office it is a binding agreement for both counterparties.

For periods less than one month, the maturity date will be the first date that is a business day that is within one, seven, fourteen days from the value date, but when near the month end must never be a date in the next calendar month

Inter-dealer brokers or the automated trading system need not be notified when participants attempt to
utilize odd settlement dates

It is not recommended that legal opinion should be obtained on the enforceability of the contract

return on investment is relatively high

absence of active market makers

wide bid/offer spreads

3.410%

3.977%

3.996%

In conditions of exceptional volatility.

If the two counterparties agree.

If approved by senior management.

1.2232

1.2234

1.2267

the average maturity of liabilities on a balance sheet

the difference between the duration of the longest-held and shortest-held liabilities on the balance sheet

the average maturity of the portfolio on the asset side of a balance sheet

Today

Tomorrow

On the spot value date

A maturity analysis of a bank's interest-bearing assets and interest-bearing liabilities.

A calculation of the spread between the duration of the interest-bearing assets and the interestbearing liabilities.

The evaluation and management of the gap between a bank's volume of loans and deposits.

The Euronext.LIFFE short sterling futures contract has a tick value of GBP 12.50 and a face value of
GBP 1,000,000

The Euronext.LIFFE JPY futures contract has a tick value of JPY 2,500 and a face value of JPY
1,000,000,000

All of the above

EUR 3,297,004.19

EUR 3,297,025.09

EUR 3,296,985.23

The Head of Operations has the sole responsibility of ensuring the correctness and validity of the SSI set up.

SSIs should be stored and maintained in the bank's general static data system.

SSI staff should be fully integrated within Operations to insure consistent and reliable settlement guidelines.

one day after the deal is done

immediately after having received the confirmation of the counterparty

no later than the value date of the first leg of the transaction

A short call option + short put option with a higher strike price than the call option

A short call option + short put option with a lower strike price than the call option

A long call option + short put option with higher strike price than the call option

-EUR 52,161.00

-t-EUR 47,839.00

Nil

should never reveal their future dealing intentions to their counterparties

should agree upon the method of assignment before transacting

should only reveal any such intentions after the confirmations have been exchanged

1.73%

1.77%

1.80%

Unchanged

Move towards 28/31

Insufficient information

the price differential between spot and forward gold prices

the implied forward price of gold

the price of gold for forward delivery

EUR 349,806

EUR 319,315

EUR 324,110

the tenth of the following months: March, June, September and December

the third Wednesday of January, April, July and October

the Monday before the third Wednesday of March, June, September and December

The volatilities of the underlying assets are normally distributed and the prices remain constant.

The risk factors are normally distributed and volatilities of risk factors and correlations between risk factors are constant.

The prices of underlying assets are normally distributed, the volatilities of risk factors follow a GARCH process and correlations between risk factors are constant.

Dealers stick to market terminology in order to avoid the impression that they are offering an advisory or fiduciary role.

Dealers restrict themselves to terminology listed and explained in Chapter 11 of the Model Code.

Dealers define complex terminology in the confirmation of a deal.

the monetary authority in the country where the broker is located

the banking association in the country where the bank is located

the local foreign exchange market committee

All investigation cases should be handled within the same day

All investigation cases should be handled within 2 days

Investigation cases received before noon should be handled within the same day and those received after midday should be handled before noon the next day

7.525322

7.525312

7.524688

149.69-71

63.52-53

63.51-54

Dealers may seek a compensation payment in favor of the bank or an adjustment to brokerage bills from the broker for switching names.

The practice of name switching/substitution is neither acceptable nor desirable.

Name switching/substitution transactions should be executed as promptly as possible not considering credit limits and policy guidelines.

CD

BA

USCP

At that price

At that price in a marketable amount

At that price in a marketable amount, provided the counterparty's name is acceptable and the market
price has not moved excessively

the market supervisor

the national ACI association

the central bank

The transaction is terminated and the collateral is returned to the seller

The transaction is rolled over until the coupon is paid or the issuer becomes insolvent, at which point the seller becomes an unsecured creditor of the issuer

The buyer is obliged to make a manufactured payment to the seller and becomes an unsecured creditor of the issuer

selling futures contracts on 30-year German Government bonds

buying put options on 30-year German Government bonds

buying a 3x6 forward rate agreement

An adjusted settlement amount is paid at the end of the FRA contract period that includes reinvestment interest for late payment

An unadjusted settlement amount is paid at the end of the FRA contract period

An unadjusted settlement amount is paid at the start of the FRA contract period

You pay EUR 20,000.00

You receive EUR 20,000.00

You receive EUR 19,826.52

ARP

ARA

AED

The number of EUR per USD

Depends on whether the price is being quoted in Europe or the US

Depends on whether the price is being quoted interbank or to a customer

Off-premises dealing should be strictly prohibited.

After-hours trading should be prohibited.

Deals transacted after normal business hours or off-premises should only be undertaken on mobile phones approved by management.

One year

183 days

5 years

-30

+29

+30

Nothing

A margin call is triggered on the seller

Equivalent value plus reinvestment income is deducted from the repurchase price

On an special number known only to the chief dealer.

On a number located in the office of the internal auditor.

Secured by recordings that are stored for a suitable period.

An exchange of two streams of interest payments in different currencies and an exchange of the principal amounts of those currencies at maturity

An exchange of currencies on a date beyond spot and at a price fixed today

An agreement to buy (sell) an amount of base currency value spot and simultaneously resell (buy back) the same amount to the same counterpart value today

Break-even rate

Implied rate

Forward-forward rate

Buyer

Issuer

It depends on the agreement between the buyer and seller

1.0353

1.0347

1.0348

Investors have less appetite for longer-term investments

Borrowers prefer to borrow long-term but lenders prefer to lend short-term

The risk premium becomes significant only at longer maturities

enable the parties to comply with any capital adequacy requirements

provide for the absolute transfer of title to securities

detail the course of action in the case of defaults, for example the rights and obligations of the counterparties and the full set-off of claims between the parties

Created an exposure to the CHF

Created an exposure to the USD

Switched a USD asset temporarily into CHF without taking currency risk

The quoted currency

The counter currency

The terms currency

You may quote without stating the amount you are prepared to deal.

You are only committed to deal in a marketable amount.

You must be prepared to deal for more than EUR 50,000,000.00 in case Bank XYZ wishes to.

subordinated tranches and creditworthiness of the originator

creditworthiness of the originator and third-party insurance

reserve account and interest rate hedging

Claims are not expected to be submitted after 15 days from the actual settlement date.

Claims of less than USD 5,000.00 are not expected to be submitted.

Acknowledgement of receipt of a claim should be confirmed within 48 hours by email or SWIFT.

Only if they are dealing with brokers.

Only if they are dealing in a fast moving market.

Only if the amount is not marketable.

3.625%

3.285%

3.835%

usually the current spot EUR/USD mid-market rate

commonly the prevailing 4-month forward EUR/USD mid-rate

always the forward EUR/USD bid rate of the first swap leg

Interbank deposit

Classic repo

Treasury bill

0%

15%

75%

uncertainty of valuation

high correlation with risky assets

listed on a developed and recognized exchange

agree, since entertainment is a normal part of business

agree but insist on paying half the cost

agree, if the broker pays for the event but does not attend it

it splits differences arising from failed settlement between the two counterparties

it removes the need for sending out SWIFT confirmations

the use of SSI's secures the trading on more secure platforms

It may be permitted when allowed by the local market regulator.

Itis unconditionally accepted bythe Code.

It is allowed only if senior management approval is obtained.

if he is confident that the dealer will not back out of the deal

if both parties to the deal have established credit lines for each other

if one party to the deal acknowledges interest

Implicit nominal rate

Funding rate

Effective future rate

Central bank.

Head of compliance.

ACI's Committee for Professionalism (CFP).

Interest rates in different currencies will tend to move into line with each other over time

Interest rates in different currencies differ due to differences in expectations about inflation

Selling a low interest rate currency to invest a high interest rate currency will only be profitable if one hedges the currency risk

under reference

firm, but not necessarily in marketable amounts

merely indicative

Sell 3x6

Buy 0x6

Sell 6x9

verbal agreements are considered binding

written confirmations always override terms verbally agreed to

verbal agreements are never to be considered legally binding

6-month AUD rates are lower than 6-month NZD rates

Spot AUD/NZD will be higher by approximately 170 points in 6 months

The AUD yield curve is positive, whilst the NZD curve is negative

periodic exchange of fixed and floating payments up to and including maturity

at maturity by net payment

after maturity by exchange of fixed and floating payments

only after consultation with the local regulator

only if the switching transaction is done at the current market rate

only after approval by the broker's senior management

the issuer of a payment for the relevant trade distinct from the counterparty

the issuer of a payment for the relevant trade identical to the counterparty

the recipient of a payment for the relevant trade identical to the counterparty

Hybex should become a payer of a fixed rate on a swap against receipt of LIBOR.

Hybex should become a receiver of a floating rate on a swap against payment of a fixed rate

Hybex should become a receiver of a floating rate on a swap against payment of LIBOR

0.60%

0.949%

1.074%

Substantial risk of loss and substantial opportunity for gain

Limited risk of loss and limited opportunity for gain

Substantial risk of loss and limited opportunity for gain

0%

15%

75%

EUR 10,000.00

GBP 8,990.00

EUR 8,990.00

1,237,873.80

1,240,694.79

1,242,720.50

The level of interest rates in the base currency

The level of interest rates in the quoted currency

Your expectations of the future spot rate

The expected appreciation or depreciation of the base currency

The expected appreciation or depreciation of the quoted currency

Solely, the interest rate differential between two currencies

CD

Interbank deposit

Classic repo

Amendments to customer standing data should be subject to 4 eyes control and only changed if the appropriately authorized documentation is provided.

No trading should be done without first identifying and setting up the counterparty.

Counterparty identification and setup of settlement instructions should be completed in less than 2 working days.

Collateralized Clearing Process

Collateralized Counterparty Protection

Collateralized Credit Protection

CLS settlement members may rescind instructions unilaterally provided that the rescind messages reach the CLS Bank before the 06:30 CET deadline.

CLS settlement members may rescind instructions bilaterally only if the rescind messages reach the CLS Bank before the 00:00 CET deadline.

CLS settlement members may rescind instructions bilaterally only if the rescind messages reach the CLS Bank after the 06:30 CET deadline.

minimum 999.9/1000 pure gold; weight between 350 and 430 fine ounces

at least 995/1000 pure gold; weight of 400 fine ounces

minimum 995/1000 pure gold; weight of 400 fine ounces

Instruments qualifying for recognition as Tier 1 or Tier 2 capital will be substantially restricted.

Basel III does not include Tier 3 capital

New non-common equity Tier 1 and Tier 2 instruments are more loss-absorbing than previously

They are executed within six months.

They are extended for not more than one year.

All of the above.

You are committed to sell to the counterparty his full EUR amount subject to credit limits on the counterparty.

You are committed to sell EUR up to the amount permitted by your credit limits on the counterparty.

You are committed to sell a marketable USD amount unless the quote was for a specific amount.