Click on the Detail Button to view the Formula Sheet. What does the Model Code say about the responsibility of a broker in handling suspicious transactions?
A. Suspicious transactions should be reported by the principals.
B. Brokers need to make staff aware of the problem and exercise vigilance.
C. A broker should report any suspicions about a transaction to the other counterparty.
D. Brokers should advise clients to reject the name.
Click on the Detail Button to view the Formula Sheet. Where the Committee for Professionalism of the ACI has been notified of a breach of the letter or spirit of the Model Code, it
A. Will examine the complaint.
B. May consult with the local ACI.
C. Will bring the matter to the attention of the local regulator.
D. None of the above.
Click on the Detail Button to view the Formula Sheet. Under the Model Code, if a broker shouts "done" or "mine" at the very moment a dealer shouts "off":
A. No deal is done
B. The deal is done.
C. It should be resolved in consultation with senior management.
D. The central bank should be consulted.
Click on the Detail Button to view the Formula Sheet. Confirmations should be sent out by both counterparties through an efficient and secure means of communication, preferably electronic:
A. Within 24 hours of the deal.
B. Within two business days of the deal.
C. Before the value date.
D. As soon as possible.
Click on the Detail Button to view the Formula Sheet. Extended trading hours and off-premises dealing can involve additional hazards, the avoidance of which requires clear controls. The Model Code prescribes best market practice. Which of the following is true?
A. Off-premises dealing should be forbidden
B. After-hours trading should be forbidden.
C. Deals transacted after normal business hours or off-premises should only be undertaken on mobile phones approved by management.
D. Deals transacted after normal business hours or off-premises either by mobile phones or any other equipment should only be undertaken with the approval of management.
Click on the Detail Button to view the Formula Sheet. You have received a gift from a good friend who also happens to be your USD/YEN broker. Under such circumstances, the Model Code recommends that you should:
A. Always decline gifts.
B. Give the gift to charity.
C. Keep the gift.
D. Report the gift to management.
Click on the Detail Button to view the Formula Sheet. Bank A pays for EURO 5 m at 1.1592. Bank B offers EURO 10 m at 1.1597. Broker XYZ quotes to the market EURO / USD 1.1592/97. Bank C takes the offer at 97. The broker is obliged to reveal:
A. The name of Banks A and B.
B. The name of Bank B only.
C. The amount that was bid but not the name of Bank A.
D. None of the above
Click on the Detail Button to view the Formula Sheet. When a broker makes an error on payment instructions The Model Code recommends that:
A. The broker remains liable for the resulting difference for 3 full business days following the date of the transaction.
B. The broker remains liable until the error is discovered.
C. The broker is not liable at all.
D. The broker's liability should be limited as he is not in a position to directly rectify the situation.
Click on the Detail Button to view the Formula Sheet. If the value date of forward USD/JPY transactions is declared a holiday in either New York or Tokyo, the correct value date will be:
A. The value date of the centre which is open.
B. The next business day of the centre which is closed.
C. The next business day when both New York and Tokyo are open.
D. None of the above.
Click on the Detail Button to view the Formula Sheet. The use of mobile phones from within the dealing room for transacting business:
A. Is not considered good practice.
B. Is accepted in case of direct deal input into the bank's system.
C. Is accepted for senior dealers.
D. Is accepted for hedging transactions.
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