Click on the Detail Button to view the Formula Sheet. When a broker calls "off" at the very instant a dealer "hits" the broker's price:
A. The transaction should be concluded.
B. The broker decides whether or not the deal is done.
C. ACI's Committee for Professionalism will decide whether the transaction should be concluded.
D. The transaction should not be concluded.
Click on the Detail Button to view the Formula Sheet. Under which circumstances are banks allowed to park positions with a counterparty?:
A. It is forbidden to park positions.
B. In conditions of exceptional volatility.
C. If the two counterparties agree.
D. If approved by senior management.
Click on the Detail Button to view the Formula Sheet. In a dispute between the dealer and a broker, the Model Code recommends that this should be referred in the first instance to:
A. Central bank.
B. Senior management of the bank and the brokerage firm.
C. Head of compliance.
D. ACI's Committee for Professionalism (CFP).
Click on the Detail Button to view the Formula Sheet. Bank B's price is shown by a broker to Bank A and is dealt by Bank A. If Bank A wants to increase the amount of the transaction, what is good market practice according to the Model Code:
A. Bank A can call Bank B directly.
B. Bank A should wait 10 minutes before calling Bank B
C. Bank A cannot increase the amount.
D. Bank A should go back to the broker .
Click on the Detail Button to view the Formula Sheet. The use of standard settlement instructions (SSI's) is strongly encouraged because:
A. It reduces operational risk.
B. It splits differences arising from failed settlement between the two counterparties.
C. It removes the need for sending out SWIFT payment authorisations.
D. All of the above.
Click on the Detail Button to view the Formula Sheet. In spite of having agreed to a deal, dealers are not bound to the deal if it is subject to documentation. The Model Code:
A. Does not regard this as a good practice.
B. Urge dealers to be bear this in mind, as this is common practice for capital market deals.
C. Does not comment on this matter.
D. Recommends that national ACI Associations deal with this according to their local customs.
Click on the Detail Button to view the Formula Sheet. For which of the following reasons is the extension of
forward contracts at non-current rates is discouraged:
These could be used to conceal profit or losses.
ii.These could be used to perpetrate fraud.
iii.These could result in an unauthorised extension of credit.
iv.These could result in confusing settlement instructions.
A. (i), (ii), (iii), and (iv).
B. (i), (ii) and (iii).
C. (i) and (iii).
D. none of the above.
Click on the Detail Button to view the Formula Sheet. Confirmations must be sent out:
A. Immediately after the deal is done.
B. As quickly as possible after the deal is done.
C. By electronic media only, e.g. fax, telex.
D. Not later than the value date of the first leg of the transaction.
Click on the Detail Button to view the Formula Sheet. Where the matter of dealing for personal account is concerned, the Model Code recommends that:
A. Subject to local legal requirements, this matter is one for bank management to decide.
B. Bank management should encourage such activities because it allows banks to monitor the gambling habits of their staff.
C. Where this is allowed, bank management should have a clearly defined policy and written procedures.
D. Bank management should allow staff to deal for their personal account on a case to case basis.
Click on the Detail Button to view the Formula Sheet. Fraud is typically classified as:
A. Credit risk
B. Market risk
C. Legal risk
D. Operational risk
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