Which of the following is the best description of a “broken trade”?

when a trade has been agreed to with dates (maturities) different from the standard dates
when one of the parties to the deal unilaterally decides to withdraw from the on-going transaction
when, due to a system break, one or both parties to the deal chooses to withdraw from the ongoing transaction
when, due to a system break, one or both parties to the deal are unclear as to whether the deal has been done

Answer(s): D

What is the policy of the Model Code on drugs, alcohol and other substance abuse in the dealing room?

Management is to proximately inform the local regulator of any suspected drug abuse in either the front office or operations department.
The chief dealer must inform the ACI’s Committee for Professionalism as soon as he suspects any drug or alcohol abuse in his dealing room.
Policies should be developed and clearly announced, including penalties for individuals who are found to be substance abusers.
Management should take all reasonable steps to stop the abuse of drugs, including alcohol and other substances.

Answer(s): C

Which of the following statements is true? The repo legal agreement between the two parties concerned should:

Answer(s): A

Principals who enter into an interest rate swap with the intention of shortly afterwards assigning or transferring the swap to a third party:

should never reveal their future dealing intentions to their counterparties
should make clear their intention to do so when initially negotiating the deal
should agree upon the method of assignment before transacting
should only reveal any such intentions after the confirmations have been exchanged

Answer(s): B

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