ACI-Dealing Certificate (2)

1.

You request use of funds from your agent bank for 1 day on an amount of EUR 100,000,000.00, EONIA was 0.812% and the ECB deposit facility rate is 0.50%.
What use of funds settlement amount should you expect?

EUR 1,388,89 EUR 1,561.11 EUR 2,255.56 EUR 2,951.39

2.

If the value date of a forward USD/JPY transaction is declared a holiday in either New York or Tokyo, the correct value date will be:

the value date of the financial centre that is open the next business day of the financial centre which is closed the next business day when both New York and Tokyo are open the previous business day when both New York and Tokyo are open

3.

How frequently should business contingency procedures be tested and updated?

quarterly tests I updates as needed at least every second year half-yearly tests / yearly updates at least yearly

4.

Which of the following does the Model Code mention with regards to recording telephone conversations?

There is no need to inform new counterparties and clients that conversations will be recorded. It is normal practice that tapes and other records should be kept for at least twelve months. The periods for which tapes and other records should be retained should reflect the way in which the terms and conditions of transactions have been agreed,and the duration of transactions. Dealers and other staff are reminded that telephones and electronic text messaging systems in the firm are intended for business and private use and thatconversations and exchanges of text messages should be conducted in a casual manner.

5.

Regarding access to production systems, which of the following is incorrect?

Profiles for functions are encouraged and should be reviewed semi-annually by a manager. Developers should have unrestricted access to production systems. Access to production systems should be rigorously controlled. Users should not have access to change system functionalities.

6.

Which one of the following statements is true?

Brokers should only show the names of banks to counterparties who have prime credit ratings. Brokers should only show the names of banks to counterparties who provide good liquidity to the brokered market. Brokers should only show the names of banks to counterparties whom they know well. Brokers should only show the names of bank counterparties if both sides display a serious intention to transact

7.

When do bank participants have a duty to make absolutely clear whether the prices they are quoting are firm or merely indicative?

only if they are dealing with brokers only if dealing on an e-trading platform only if they are dealing in non-marketable amounts always

8.

The use of standard settlement instructions (SSI's) is strongly encouraged because:

it reduces operational risk it splits differences arising from failed settlement between the two counterparties it removes the need for sending out SWIFT confirmations the use of SSI's secures the trading on more secure platforms

9.

Which of the following statements is true concerning dealing and rollovers at non-current rates?

When setting the rates for an FX swap to extend the maturity, the spot rate should be fixed immediately within the current spread Where the use of non-current rates may be necessary, they should only be entered into with the prior explicit permission of the quoting party's seniormanagement Dealing and rollovers at non-current rates are relatively common market practice and therefore should not be treated differently from any other transaction Dealing and rollovers at non-current rates are forbidden as they can help perpetrate fraud and tax evasion

10.

A bank that has quoted a firm price is obliged to deal:

At that price At that price in a marketable amount At that price in a marketable amount, provided the counterparty's name is acceptable At that price in a marketable amount, provided the counterparty's name is acceptable and the market price has not moved excessively

ACI-Dealing Certificate (2)

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ACI-Dealing Certificate (2)

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