Under the Model Code, if a broker shouts "done" or "mine" at the very moment a dealer shouts "off":
A. No deal is done and the broker should inform both counterparties accordingly.
B. The deal is done and the broker should inform both counterparties accordingly.
C. The matter should be resolved in consultation with senior management of the 3 institutions.
D. The ACI's Committee for Professionalism will investigate and advise accordingly.
By what means should a financial institution preferably submit SSI changes and notifications to its clients?
A. e-mail
B. fax or letter
C. MTn99 SWIFT message
D. MT670/671 SWIFT message
The Model Code's correct recommendation regarding electronic trading states:
A. Time stamps on e-trading platforms need to be internally and globally synchronised to ensure appropriate tracking of trades
B. All records should be archived and appropriate audit trails must be maintained as required by the local Central Bank
C. Regular tests for loss of access to external liquidity platforms but not loss of service to clients should be undertaken
D. Testing of the system's capability to cope with extreme volumes should be carried out annually
When can a broker consider a deal to be done?
A. if he is confident that the dealer will not back out of the deal
B. if both parties to the deal have established credit lines for each other
C. if one party to the deal acknowledges interest
D. if he receives acknowledgement from both the dealers involved
A dealer in the spot foreign exchange market has to assume that a price given to a voice broker is only valid:
A. for a short length of time, usually 30 seconds
B. until the price has been taken "off" by the dealer
C. for a short length of time, typically a matter of seconds
D. for a minute or two
As to the Charter of ACI - The Financial Markets Association, what do members not pledge?
A. to maintain the professional level of competence and the ethical standards of loyalty
B. to develop sound reciprocal dealing relationships between institutions and to render unconditional mutual assistance
C. to demonstrate the best ethical behavior in strict accordance with the content and spirit of The Model Code
D. to maintain the highest possible standards in their profession by constantly setting an example of propriety in business
Which of the following statements reflects the position of the Model Code on gambling or betting amongst market participants?
A. Gambling and betting amongst market participants should be strongly discouraged.
B. Gambling and betting amongst market participants may be permitted if management monitors it.
C. Gambling and betting amongst market participants should be prohibited.
D. Gambling and betting amongst market participants is only tolerated if it is previously reported to the CFP of the ACI.
The popularity of FX-trading via Internet platforms has serious implications for the applicability of traditional rules such as "Know Your Customer". Which of the following are correct?
A. "Know Your Customer" rules cannot be applied online and banks will have to rely instead on new safeguards such as third-party authentication.
B. "Know Your Customer" rules apply only to retail customers and are therefore irrelevant to currency trading.
C. In practice, banks can avoid "Know Your Customer" rules by limiting online deal size to EUR 100,000.00 or equivalent.
D. No trading should be carried out without first identifying and setting up the counterparty; this includes "Know Your Customer" procedures.
What would be the strategy for a bank if it is unable to speculate on interest rates and/or unable to absorb market risk?
A. to run a zero gap
B. to hold more interest rate sensitive assets than interest rate sensitive liabilities
C. to reduce the size of the balance sheet
D. to hold fewer interest rate sensitive assets than interest rate sensitive liabilities
Net funding requirements in liquidity management are determined by means of:
A. adding up expected vault cash outflows, ATMs and other cash points operated by the institution across all branches
B. establishing a forward cash flow plan that takes account of all contractual and behavioral cash flows related to assets and liabilities
C. the net cash flow from investment activities in the IFRS consolidated Statement of Cash Flows for prior periods
D. subtracting short-term liabilities from short-term assets
Nowadays, the certification exams become more and more important and required by more and more enterprises when applying for a job. But how to prepare for the exam effectively? How to prepare for the exam in a short time with less efforts? How to get a ideal result and how to find the most reliable resources? Here on Vcedump.com, you will find all the answers. Vcedump.com provide not only ACI exam questions, answers and explanations but also complete assistance on your exam preparation and certification application. If you are confused on your 3I0-012 exam preparations and ACI certification application, do not hesitate to visit our Vcedump.com to find your solutions here.