SOFQ Online Practice Questions and Answers

Within internal books and records, the recording of the trading book on a securities trade facilitates:

A. Reconciliation of settled positions, per trading book and per security - between the trading department and operations

B. Reconciliation of settled positions, per trading book and per security - between operations and the firm's custodian

C. Reconciliation of trading positions, per trading book and per security - between the firm's counterparty and the firm's custodian

D. Reconciliation of trading positions, per trading book and per security - between the trading department and operations

The two choices for the settlement method utilised within a securities market are:

A. 'Account Settlement1 and Tumbling Settlement'

B. Tumbling Settlement' and 'Continuing Settlement'

C. 'Continuing Settlement'and'Account Settlement'

D. 'Rolling Settlement' and 'Account Settlement'

The type of organisation that provides securities underwriting services is known as a

A. Investment bank

B. Insurance company

C. Commercial bank

D. Pension fund

A cash amount of GBP 5,909,658.47 lent on a Thursday until the second Monday (just over 1 week later) at a rate of 2.973%, would attract:

A. 7 days of interest and a cash interest amount of GBP 3369.48

B. 9 days of interest and a cash interest amount of GBP 4392.35

C. 13 days of interest and a cash interest amount of GBP 6344.51

D. 11 days of interest and a cash interest amount of GBP 5294.89

The term 'SSI' stands for:

A. Standing Settlement Instruction

B. Standard Securities Instruction

C. Settlement Standard Instruction

D. Securities Standing Instruction

Grey market trading refers to:

A. Trading of equity and bonds by investors aged 65 and over at the start of the tax year

B. Trading in convertible and exchangeable bonds prior to their conversion

C. Trading in corporate bonds following the bondholder's decision to take-up a put option

D. Trading in a new issue of bonds by parties not involved in the syndication process

The number of days of accrued interest, and the cash value of accrued interest - on a trade of USD 45,000,000 World Bank 4.37% Bonds 1st December 2032, paying interest semi- annually on 1st December and Ist June, trade date 22~d October, value date 25tl October, is:

A. 144 days and USD 786,600.00

B. 174 days and USD 950,475.00

C. 141 days and USD 770,212.50

D. 171 days and USD 934,087-50

Internal trading systems typically do not:

A. Reflect the firm's settled positions at CSDs/custodians

B. Have the capability to capture new trades

C. Hold the firm's current trading positions

D. Have the capability to amend and cancel trades

The abbreviation WAC stands for:

A. Wheel and Calculate

B. Weighted Average Cost

C. West Against Charge

D. Wait About Control

A firm executing a securities trade in the capacity of agency broker intends:

A. To take a securities position, and to remain market risk neutral

B. Not to take a securities position, and not to remain market risk neutra

C. Not to take a securities position, and to remain market risk neutral

D. To take a securities position, and not to remain market risk neutral