A futures clearing house is:

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A futures clearing house is:
A. The buyer to each seller and the seller to each buyer
B. A clearing agent only
C. The self-regulatory organization for the futures exchange
D. The owner of the futures exchange

Answer : A


What steps will the CFP of the ACI probably not undertake after having been formally notified by one of the parties of a breach of the letter or spirit of the Model Code?
A. consult the local ACI national association
B. bring the matter to the appropriate court of justice
C. examine the complaint
D. bring the matter to the attention of the appropriate regulatory body

Answer : B


You buy a 30-day 4% CD with a face value of GBP 20,000,000.00 at par when it is issued.
You sell it in the secondary market after 10 days at 4.05%.
What is your holding period yield?
A. 4.05%
B. 3.891%
C. 3.838%
D. 1.946%

Answer : B



Whose compliance rules, regulations and best practices should be followed in FX electronic trading?
A. solely those of the electronic trading platforms vendors
B. exclusively ACI’s Model Code Best Practices
C. ACI’s Model Code Best Practices and ICMA’s Market Practice & Regulatory Policy
D. the electronic trading platforms vendors and the ACIs Model Code Best Practices guidelines


Answer : B



If you sell USD 3-month forward to a client against EUR, what should you do to hedge your position?
A. Buy a 3-month EUR/USD outright forward
B. Buy USD spot, and sell and buy a 3-month EUR/USD FX swap
C. Sell EUR/USD in the spot market, lend EUR for 3 months and borrow USD for 3 months
D. Sell EUR/USD in the spot market, borrow EUR for 3 months and lend USD for 3 months


Answer : D