ACI-Dealing Certificate (2) Set 10

1.

In dealing terminology, what does "my risk" refer to?

the market amount for which the quote is valid the acknowledgement by the broker that he may be stuffed the acknowledgement by the dealer receiving the quote that the rate may have to be re-quoted the quoting dealer cautions the receiver of the quote that the price may have to be re-quoted at the receiver's risk

2.

Which one of the following statements about "CLS rescinds" is correct?

CLS settlement members may rescind instructions unilaterally provided that the rescind messages reach the CLS Bank before the 00:00 CET deadline. CLS settlement members may rescind instructions unilaterally provided that the rescind messages reach the CLS Bank before the 06:30 CET deadline. CLS settlement members may rescind instructions bilaterally only if the rescind messages reach the CLS Bank before the 00:00 CET deadline. CLS settlement members may rescind instructions bilaterally only if the rescind messages reach the CLS Bank after the 06:30 CET deadline.

3.

The process of confirming trades is a function that can be performed by:

any dealer as long as he/she is not a party to the trade staff in the back-office/operations who are independent of the trade staff in the dealing room who are not dealing any staff outside the dealing room

4.

Your broker quotes you EUR/USD at 1.3425-28. You respond by saying "yours". Which one of the following statements is true?

You are committed to sell a marketable EUR amount unless the quote was for a specific amount. You are committed to sell to the counterparty his full EUR amount subject to credit limits on the counterparty. You are committed to sell EUR up to the amount permitted by your credit limits on the counterparty. You are committed to sell a marketable USD amount unless the quote was for a specific amount.

5.

Which SWIFT message should be used to advise the netting position of a currency resulting from FX, NDF, options and other trades?

MTn99 MT300 MT370 MT670/671

6.

What does the Model Code advise regarding the taping of telephone conversations?

The tapes and other records should be kept until the transaction has been settled Firms should ensure that they comply with local privacy laws Management should ensure that the installation and control of recording equipment complies with local legislation, including laws on data protection, privacy andhuman rights as well as the manufacturers minimum requirements All front office personnel should have access to these tapes and records

7.

From the following CAD rates:
1M (31-day) CAD deposit 0.95%
1x2 CAD (30-day) FRA 1.21%
2x3 CAD (31-day) FRA 2.01%
Calculate the 3-month implied cash rate.

0.00% 0.00% 0.00% 0.00%

8.

Using the following rates:
3M (90-day) EUR deposit 0.25%
6M (180-day) EUR deposit 0.50%
What is the rate for a EUR deposit, which runs from 3 to 6 months?

0.00% 0.00% 0.00% 0.00%

9.

The two-week repo rate for the 5.25% Bund 2011 is quoted to you at 3.33-38%. You agree to reverse in bonds worth EUR 266,125,000.00, but insist on an initial margin of 2%. You would earn repo interest of:

EUR 337,874A0 EUR 342,947.58 EUR 337,739.24 EUR 342,810.40

10.

What is an outright forward FX transaction?

A spot sale (purchase) and a forward purchase (sale) A spot sale (purchase) and a forward sale (purchase) An exchange of currencies on a date beyond spot and at a price fixed today An exchange of currencies on a date beyond spot

ACI-Dealing Certificate (2) Set 10

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ACI-Dealing Certificate (2) Set 10

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