Cash amounts & balances, stock and derivative quantities & balances
Cash amounts & Balances only
7. Reconciliation data held in one of the firm's business app (eg its settlement system) with data hed on one or more of its other business app systems is internal or external?
Both
Internal
External
Neither
8. What is considered "best practice" in a settlement system with regard to the design of relationship between trade reference and instuction reference?
One trade reference to many instruction references
Many trade references to many instruction references
A single reference number for both the trade and instruction
9. A settlement agent send a message that tells you that an instruction is matched, but you don't have any stock to deliver. What should you do?
Cancel the instruction
Investigate internally
Take this up with the trading party
10. Which instrument classes are generally not acceptable as collateral for repo transactions?
Corporate bonds
OECD gov bonds
UK equities
11. If you were designing a new settlement system, how would you deliver a maturity ladder to users?
As a screen-based enquiry system which is updated overnight
As printed due to the increased cost of providing a real-time or screen-based enquiry
As a real-time enquiry system
Via SWIFT messaging
12. SWIFT key exchnage provides 5 security benefits to participants. 4 of those are authenticity, intergrity, confidentiality and access control. What is the final benefit?
Digital Signature
Non-repudiation (originator cannot deny that the message was sen as it contains their unique digital signature)
ACK/NACK
13. Reconciliation of data eg nostro accounts, with the settlement agents that operate those accounts - is it internal of external?
Both
External
Internal
14. What is an XBRL?
XML Message Standard for exchanging information about corporate data eg P&L, balance sheets between the company and its stakeholders
an XML message standard for OTC derivatives
15. Which ONE of the following is outside the scope of the FIX protocol?
Account Allocations
Indications of Intrerest
Settlement instructions
Order acknowledgement
16. What is held within "our depot account"
The counterparty's stock settlement account
An account where stock is held.
An account where repo transactions are held
17. What is a Passive Breach?
Breach caused by market conditions outside of control of the manager or investor
Where a fund manager trades into the wrong investment (eg not where the client wants to trade in)
18. What does field 61 of MT950 message beginning with '61:050704C472,50...." mean?
This is a debit entry of 472.50
This is a credit entry of 472.50
The opening balance of the account is 472.50
19. Which tag on the MT950 message provides details of the identity of the account to which this message relates?
THE HEADER LINE - account number to which the balances and transactions relate to
TAG 25 - account number to which the balances and transactions relate to
TAG 28- account number to which the balances and transactions relate to
TAG 60 - account number to which the balances and transactions relate to
20. An individual maturity ladder page should be provided for which ONE of the following?
For each Euroclear account that a firm uses to settle trades.
For each currency that a firm trades in
Each bank account that a firm uses to settle trades
For each CREST account that a firm uses to settle trades
