When do bank participants have a duty to make absolutely clear whether the prices they are quoting are firm or merely indicative?

Answer(s): D

The use of standard settlement instructions (SSI’s) is strongly encouraged because:

it reduces operational risk
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

Answer(s): A

Which of the following statements is true concerning dealing and rollovers at non-current rates?

When setting the rates for an FX swap to extend the maturity, the spot rate should be fixed immediately within the current spread
Where the use of non-current rates may be necessary, they should only be entered into with the prior explicit permission of the quoting party’s senior management
Dealing and rollovers at non-current rates are relatively common market practice and therefore should not be treated differently from any other transaction
Dealing and rollovers at non-current rates are forbidden as they can help perpetrate fraud and tax evasion

Answer(s): A

A bank that has quoted a firm price is obliged to deal:

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

Answer(s): C

Free 3I0-012 Exam Braindumps (page: 23)