QUESTION: 157 Topic: 2, Volume B

What steps will the CFP of the ACI probably not undertake after having been formally notified by one of the parties of a breach of the letter or spirit of the Model Code?

consult the local ACI national association
bring the matter to the appropriate court of justice
examine the complaint
bring the matter to the attention of the appropriate regulatory body

Answer(s): B

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QUESTION: 158 Topic: 2, Volume B

Experience has shown that recourse to taped telephone conversations proves invaluable to the speedy resolution of disputes. Therefore, the Model Code recommends:

that all telephone conversations (internal and external) be taped without informing counterparties
that only conversations undertaken by dealers and brokers should be recorded
that all conversations undertaken by dealers and brokers should be recorded, together with back office telephone lines used by those responsible for confirming deals or passing payments to other institutions
that only telephone conversations between dealers and brokers be recorded

Answer(s): D

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QUESTION: 159 Topic: 2, Volume B

Which of the following correctly states the Model Code’s recommendations regarding electronic trading and broking?

Liquidity providers should be cognizant of reputational risks when supplying liquidity for onward third party consumption.
Market participants must not seek information as to the legal status of a potential counterparty before allocating credit or trading status.
Transactions should be handled in accordance with the regulator’s dealing rule book.
Access to systems internally and at the client interface must be strictly controlled by the dealers.

Answer(s): A

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