suite of software products that ensures technical interoperability between users by providing the functionality required to communicate over these services
Messages being sent to an intermediate station whee they are kept and sent at a later time to the final destination or to another intermediate station.
A security layer that is essential to SWIFT environment with regarding sending / receiving messages. Use of authentication keys to encrypt messages.
highly secure telecommunications based on the IP Protocol
7. The identity of the other party & its settlement agent are represented by what code?
SEDOL, ISIN or CUSIP
BIC or CSD codes
ISIN
SEDOL
8. Why would a Market Maker or Sell-Side firm decide to borrow securities?
They've run short on positions (sold more stock than bought) or they cannot deliver their securities.
They've run long on positions (bought more stock than they sold) or they cannot deliver their securities.
9. What does the status code "UNM0" mean?
Trade is unmatched, but you have no stock to deliver - try to borrow.
Unmatched - you have sent an instruction but your counterparty hasn't.
A trade party has alleged a trade against you - investigate
Urgent Unmatch - the trade is due for settlement tomorrow or earlier
10. Which code represents the identity of a security?
ISIN, SEDOL or CUSIP code
BIC
ISIN code only
SEDOL and BIC
11. Why do traditional fund managers lend stock?
To influence the management of the company concerned - by borrowing they can vote at company meetings
To increase liquidity on their balance sheets & To reduce their market risk
Because of the fee they receive - generates extra income
Because of the interest they receive - generates extra income
12. A closed user group which is not eligible for SCORE and where the corporate can only communicate with their bank is called what?
SCORE
MA-CUG
FAFT
13. FoP creates what type of risk?
Settlement
Market
Credit
Operational
14. Under UK Law the BORROWER of securities becomes what type of owner?
Nominal Owner - receives all dividends, coupons and any action proceeds at the end of the loan period.
Nominal Owner - receives all dividends, coupons and any action proceeds during the period of the loan.
Nominal Owner - receives all dividends & interest during the period of the loan.
15. What is the threshold if a firm wishes to "settle within a tolerance"?
USD 50.00
USD 250.00
USD 25.00
USD 100.00
16. In a repo transaction, what is returned to the lender at the closing leg?
collateral and interest
Interest
Cash
Collateral and the security
17. What is the type of SWIFT's interactive communications service which is utalised for sending files between parties and the transmission of mass payments or reporting information called?
XML
SWIFTNet FileAct
FIX Protocol
SWFITNet InterAct
18. What is the motivation of the BORROWER of Stock Lending?
to lend cash on a secured basis
to acquire a specific quantity of a given stock to meet their commitment to deliver
To borrow cash at a better rate of interest than it would if it borrowed on an unsecured basis
To increase their return by loaning out stock for a fee.
19. Under the UK Law, what rights does the LENDER of stock have?
Nominal Owner - loses voting rights but is repaid any proceeds recieved by the borrower
Beneficial owner, loses voting rights but is repaid any proceeds recieved by the borrower
Beneficial owner, loses voting rights but is repaid any interest received by the borrower
20. What is XML (Extensible Markup Language)?
Messages being sent to an intermediate station whee they are kept and sent at a later time to the final destination or to another intermediate station.
Flexible way to create common information formats and share them on the internet, intranets and elsewhere - ISO 20022
suite of software products that ensures technical interoperability between users by providing the functionality required to communicate over these services
