The Model Code stipulates that you have a right to qualify your quotes in terms of amounts:

Answer(s): A

As regards controls, which of the following best practices for counterparty identification is incorrect?

Amendments to customer standing data should be subject to 4 eyes control and only changed if the appropriately authorized documentation is provided.
The set up of settlement instructions and the confirmation method should be fixed when setting the first transaction.
No trading should be done without first identifying and setting up the counterparty.
Counterparty identification and setup of settlement instructions should be completed in less than 2 working days.

Answer(s): B

What does the Model Code say concerning repos and stock-lending?

Legal documentation must be put in place as soon as possible after transaction.
All market participants should use the Modified Previous Business Day Convention.
The exact maturity (end) dates for transactions must be agreed as soon as possible after a transaction.
All market participants should use the Modified Following Business Day Convention.

Answer(s): D

What should be done when a voice broker hits a dealer’s price as “done” at the very instant the dealer calls “off”?

The deal should not be concluded and the broker should inform both counterparties accordingly.
The transaction should be concluded and the broker should inform both counterparties accordingly.
The broker should immediately inform both counterparties that the deal will have to be renegotiated.
The broker should decide whether the transaction is concluded or not and inform both counterparties accordingly.

Answer(s): B

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