6. What is a system called which specialises in processing orders places by customers in different asset classes and is linked to the sources of market data allowing the dealer to "see the market"?
Trade Capture System
Equities Trading System
OTC Derivatives Trading System
Main Settlement System
7. What is Statutory Reporting?
providing the firm's balance sheet and P&L accounts, then subject to internal & external audit
providing the firm's balance sheet and P&L accounts, subject to external audit
Producing financial and statistical returns demanded by the firm's regulator
Producing financial and statistical returns demanded by the firm's risk management policy
8. What are the 2 more important IT requirements for Reconciliations?
Access to the settlement and trading system
Configured systems able to deal with innovation in the products & automated interfaces between systems to avoid the problems of missing/ late general ledger entries.
Configured systems and access to the settlement system
9. What is the "accounting equation" for the mathematical structure of the balance sheet?
Liabilities = shareholder equity + assets
Assets = liabilities + shareholder's equity
Shareholder equity = liabilities - assets
Assets = liabilities - shareholder equity
10. "Assets - Liabilities" is a measure of what?
Shareholder Equity
Losses
Revenue
Expenses
11. In an Explosion Table, a "security position" or "security client" would be found in which column?
Market Code
Transaction type
Account Type
Account Code
12. Which of these would fall under Balance Information Items?
The name of the account
Reference Number
The opening / closing balance
Money value of the transaction
13. What is the best definition of a "Reconciliation System"?
A system which takes feeds about transactions, balances and positions FROM the main settlement systems and compares them to data received from external agents
A system which takes feeds about transactions, balances and positions SENT TO the main settlement systems and compares them to data received from external agents
A system which takes feeds about transactions and positions FROM the main settlement systems and compares them to data received from external agents
To confirm the figures reported in the general ledger are correct
14. Which account in the General Ledger will describe details of the security?
Security Position
Account Description
Account Type
Account Code
15. What is the General Ledger?
A summery of transactions and money balances.
A summery of all the transactions that occur in the company
A statement of transactions and money balances
A summery of money in vs money out
16. If "liabilities are greater than assets", should the account be CREDITED or DEBITED?
DEBIT
CREDIT
17. Which trading system would be responsible for calculating interest due to the HOLDER?
Bond Trading System
Equities Trading System
Trade Capture System
Derivatives Trading System
18. What information about the General Ledger should be included in the IT System?
Reference Data Items, Balance Information, Transaction Information
Reference Data Items & Balance Information
Reference Data & Transaction Reporting
Account opening & closing
19. The FX & Money Market Trading System is responsible for calculating what?
Interest and trade proceed
Trade proceeds & commission
Interest
Commissions only
20. How often do positions in the Derivatives Trading System need to be revalued?
