6. What is a type of service or system that trades electronically and B/S trades are matched using a matching engine?
MTF
OTF
SIs
Investment Exchange
7. A Recognized Investment Exchange dealing in fut & options in NON-FERROUS metals is called what?
London Metal Exchange Limited (LME)
Ice Futures Europe
CME Europe
LSE (London Stock Exchange)
8. An overseas investment exchange which does not carry on regulated activity in the UK and is not a regulated market is called what?
ROIE (Recognised Overseas Investment Exchange)
DIE (Designated Investment Exchange)
RIE (Recognized Investment Exchange)
9. What must an SI publish for LIQUID instruments?
Bid/ Offer prices
Disclose earnings
disclose quotes on request
Disclose commission fees
10. When equities are trades on SEAQ, what principles apply?
When an exchange member recieves a report from SEAQ it must send settlement instructions to EUI themselves.
no central counter party and therefore no novation or netting are involved
EUI settles the trades individually on the agreed VALUE DATE
All the above
11. In a ORDER-DRIVEN system, are the identities of the seller and buyer known to each other?
No
Yes
12. A Recognized Investment Exchange dealing in fut & options in ENERGY PRODUCTS is called what?
LSE (London Stock Exchange)
London Metal Exchange Limited (LME)
Ice Futures Europe
CME Europe
13. Which LSE Trading System is used to trade in UK gilts (gov bonds) and sterling-denominated corporate bonds? It has an initial opening auction with no closing auction.
SETS
SEAQ
Order Book for Retail Bonds
SETSqx
14. A Recognized Investment Exchange dealing in fut & options in DERIVATIVE CONTRACTS is called what?
London Metal Exchange Limited (LME)
LSE (London Stock Exchange)
CME Europe
Ice Futures Europe
15. In a QUOTE-DRIVEN system, are the identities of the seller and buyer known to each other?
Yes
No
16. What software platform are the LSE's trading system based on?
FIX
OBSACLE
Millennium Exchange
DEX
17. What is a firm called which elects to become a member of the clearing house and connectivity to the exchange system's AND clearing house systems?
GCM (General Clearing Member)
NCM (non-clearing member)
18. Exchange systems where orders are fulfilled through an order queue but market makers still exist to guarantee trade execution are called what?
HYBRID
ORDER-DRIVEN
QUOTE-DRIVEN
19. Products which are highly LIQUID (large daily trading volumes) are most suitable to trade on which type of exchange systems?
Order-driven
Quote-Driven
Hybrid
20. What is an OTF?
NOT a regulated market or MTF but which still allows B/S of bonds & emissions allowances or derivatives, For off-venue transactions
a regulated market or MTF which still allows B/S of bonds & emissions allowances or derivatives, For off-venue transactions
corporation or mutual exchange which provides facilities for counterparties and firms to trade securities, and is NOT allowed to trade as principle
trades electronically and B/S trades are matched using a matching engine
