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Emma Finch
Customer Success Manager | CMFASexam
In case of unforeseen events, the disruptions related to Singapore Dollar are dealt by?
In case of unforeseen events,the disruptions related to Singapore Dollar are dealt by Monetary Authority of Singapore (MAS)
In case of unforeseen events,the disruptions related to Singapore Dollar are dealt by Monetary Authority of Singapore (MAS)
Which of the following risk does the central counterparty (“CCP”) or clearing house aim to reduce?
In an effort to reduce pre-settlement risk, central banks around the world have mandated that long-dated FXforward and interest rate swap OTC transactions be cleared on a central counterparty (“CCP”) or clearing house. This would require both counterparties to place margin deposits with the clearing house, proportionate to their exposures, which can be used to cover unrealised losses in event of default by either counterparty.
In an effort to reduce pre-settlement risk, central banks around the world have mandated that long-dated FXforward and interest rate swap OTC transactions be cleared on a central counterparty (“CCP”) or clearing house. This would require both counterparties to place margin deposits with the clearing house, proportionate to their exposures, which can be used to cover unrealised losses in event of default by either counterparty.
Which circumstance should a Suspicious Transaction Report(STR) be filed?
For example, a transaction or circumstance could be considered suspicious and warrant filing a STR to the
relevant authorities if the customer:
i. Is unable to complete CDD measures;
ii. Is reluctant, unable or unwilling to provide any information requested by the financial institution; or
iii. Decides to withdraw a pending application to establish business relations or a pending transaction or to
terminate existing business relations.
For example, a transaction or circumstance could be considered suspicious and warrant filing a STR to the
relevant authorities if the customer:
i. Is unable to complete CDD measures;
ii. Is reluctant, unable or unwilling to provide any information requested by the financial institution; or
iii. Decides to withdraw a pending application to establish business relations or a pending transaction or to
terminate existing business relations.
Which of the followings are the considerations to mark up on customer’s transactions in order to compensate the market participant?
Mark up is the spread or charge that may be included in the final price of a transaction in order to compensate the Market Participant for a number of considerations such as the risks taken, costs incurred, and services rendered to a particular customer.
Mark up is the spread or charge that may be included in the final price of a transaction in order to compensate the Market Participant for a number of considerations such as the risks taken, costs incurred, and services rendered to a particular customer.
How ethics can be defined?
Ethics can be defined as a framework of moral principles that governs a Individual’s behavior.
Ethics can be defined as a framework of moral principles that governs a Individual’s behavior.
Which of the following must the licensed financial institutions report to for matters related to actual or suspected misconduct committed by their Representatives?
Licensed financial institutions that are regulated under the SFA and the FAA must shall report to the MAS, anyactual or suspected misconduct committed by their Representatives, or any of their Representatives who ceased to be a Representative before the misconduct was discovered.
Licensed financial institutions that are regulated under the SFA and the FAA must shall report to the MAS, anyactual or suspected misconduct committed by their Representatives, or any of their Representatives who ceased to be a Representative before the misconduct was discovered.
Which communication channels are used by SFEMC to disseminate its recommendations or other information to Market Participants during market disruption events?
The SFEMC will endeavour to disseminate its recommendations or other information to Market Participants through the most efficient means available, including but not limited to announcements through its website, broadcasts through MASNET or direct telephone contacts with or e-mails to senior management of Market Participants.
The SFEMC will endeavour to disseminate its recommendations or other information to Market Participants through the most efficient means available, including but not limited to announcements through its website, broadcasts through MASNET or direct telephone contacts with or e-mails to senior management of Market Participants.
During market disruption events, Market Participants are also encouraged to establish contacts with which officer of the SFEMC when needed?
During market disruption events, Market Participants are also encouraged to establish contacts with the Secretary of the SFEMC were needed.
During market disruption events, Market Participants are also encouraged to establish contacts with the Secretary of the SFEMC were needed.
Which of the following is not a feature of financial markets?
In order for financial markets to function efficiently and effectively, these key features must be present:
i. Sufficient active Market Participants to ensure liquidity;
ii. The market is reasonably transparent and participants can see prices dealt;
iii. The market has clear and enforceable rules that facilitate orderly trading and prohibit market misconduct;
and
iv. Dealing is performed on a fair and objective “best deal” basis, and is not based on personal relationships
In order for financial markets to function efficiently and effectively, these key features must be present:
i. Sufficient active Market Participants to ensure liquidity;
ii. The market is reasonably transparent and participants can see prices dealt;
iii. The market has clear and enforceable rules that facilitate orderly trading and prohibit market misconduct;
and
iv. Dealing is performed on a fair and objective “best deal” basis, and is not based on personal relationships
Which market facilitates the exchange of money from one currency to another?
The FX market facilitates the exchange of money from one currency to another and helps to determine therelative values of different currencies
The FX market facilitates the exchange of money from one currency to another and helps to determine therelative values of different currencies
Which of the following Ethical principles and standards should not be practiced by a Market Participant
Ethical principles and standards that Market Participants should strive for include:
i. Honesty in dealing with customers and counterparties;
ii. Fairness in dealing with customers and counterparties;
iii. Consistency of action; and
iv. Integrity, which is best described as doing the right thing, even when no one else is watching
Ethical principles and standards that Market Participants should strive for include:
i. Honesty in dealing with customers and counterparties;
ii. Fairness in dealing with customers and counterparties;
iii. Consistency of action; and
iv. Integrity, which is best described as doing the right thing, even when no one else is watching
What is the financial regulatory authority of Singapore?
The Monetary Authority of Singapore is Singapore’s central bank and financial regulatory authority. It administers the various statutes pertaining to money, banking, insurance, securities and the financial sector in general, as well as currency issuance.
The Monetary Authority of Singapore is Singapore’s central bank and financial regulatory authority. It administers the various statutes pertaining to money, banking, insurance, securities and the financial sector in general, as well as currency issuance.
Which of the following is a false trading?
The false trading offence refers to a false or misleading appearance of active trading or with respect to the market for, or the price for dealings in, securities or futures contract.
The false trading offence refers to a false or misleading appearance of active trading or with respect to the market for, or the price for dealings in, securities or futures contract.
On which institutions has MAS imposed restrictions regarding the limit of lending of Singapore Dollars(SGD) ?
Certain Market Participants that are licensed financial institutions, such as banks, merchant banks or CMS Licence holders are subject to restrictions against the lending of SGD. These restrictions imposed by the MAS limit the lending of SGD by such licensed Market Participants to non-resident financial institutions
Certain Market Participants that are licensed financial institutions, such as banks, merchant banks or CMS Licence holders are subject to restrictions against the lending of SGD. These restrictions imposed by the MAS limit the lending of SGD by such licensed Market Participants to non-resident financial institutions
What is the limit in Singapore Dollars(SGD) that the licensed Market Participants can lend to Non-resident financial institutions?
A licensed Market Participant may lend SGD to non-resident financial institutions for any purpose whether in Singapore or elsewhere as long as the aggregate SGD credit facilities do not exceed SGD 5 million per borrower
A licensed Market Participant may lend SGD to non-resident financial institutions for any purpose whether in Singapore or elsewhere as long as the aggregate SGD credit facilities do not exceed SGD 5 million per borrower
Which of the following activities are included in Investment banking ?
Investment banking activities include: 1)Underwriting 2)Mergers and Acquisitions 3)Sales and Trading Activities 4)Proprietary Trading
Investment banking activities include: 1)Underwriting 2)Mergers and Acquisitions 3)Sales and Trading Activities 4)Proprietary Trading
Which of the following is not a service of Private Banks?
Investment banks are also typically required to make markets for the equity and debt securities that they have originated.
Investment banks are also typically required to make markets for the equity and debt securities that they have originated.
What is known as creating a false impression of depth, or liquidity?
Creating a false impression of depth, or liquidity is referred to as quote stuffing or “wash trades.Creating an artificial impression of high demand for the asset is known as spoofing while creating a false impression of depth or liquidity is known as quote stuffing.
Creating a false impression of depth, or liquidity is referred to as quote stuffing or “wash trades.Creating an artificial impression of high demand for the asset is known as spoofing while creating a false impression of depth or liquidity is known as quote stuffing.
Hunting for Stops & Wash Trades are 2 common practices of ?
The most common false trading practices are Hunting for Stops & Wash Trades .
The most common false trading practices are Hunting for Stops & Wash Trades .
Which of the following statement is not true in regard of after hours and off premises dealings by the market participants?
After Hours and Off Premises Dealing – If Market Participants allow after hours and off premises dealing, there should be:
a. Guidelines that specify personnel authorized to engage in such activity;
b. Possible reduction of the position and loss limits allowed, reflecting the reduced decision-making resources available outside the dealing room;
c. Possible restrictions on type of transactions allowed, such as only allowing risk-reducing transactions;
d. Other risk mitigating measures, such as the mandatory inclusion of stop-loss orders;
e. A prompt written reporting process should be developed, and appropriate records should be kept for any after hours and off premises transactions undertaken.
After Hours and Off Premises Dealing – If Market Participants allow after hours and off premises dealing, there should be:
a. Guidelines that specify personnel authorized to engage in such activity;
b. Possible reduction of the position and loss limits allowed, reflecting the reduced decision-making resources available outside the dealing room;
c. Possible restrictions on type of transactions allowed, such as only allowing risk-reducing transactions;
d. Other risk mitigating measures, such as the mandatory inclusion of stop-loss orders;
e. A prompt written reporting process should be developed, and appropriate records should be kept for any after hours and off premises transactions undertaken.
Which of the following is not an element of Business Continuity Plans (BCPs)
BCPs should be updated regularly in response to environmental changes.
BCPs should be updated regularly in response to environmental changes.
Which of the following is true about stop orders?
Please note that parties giving or receiving stop orders should ensure that both parties mutually understand the terms under which such orders are made. For example, Market Participants handling a customer’s stop order should:
I. Obtain from the customer the information required to fully define the terms of a stop order, such as the reference price, order amount, time period, and trigger
Please note that parties giving or receiving stop orders should ensure that both parties mutually understand the terms under which such orders are made. For example, Market Participants handling a customer’s stop order should:
I. Obtain from the customer the information required to fully define the terms of a stop order, such as the reference price, order amount, time period, and trigger
Where a Market Participant engages in borrowing or lending of securities to a customer, a written agreement should be put in place, setting out the terms and conditions of the borrowing or lending. Which of the following options should be included in the agreement?
When a Market Participant engages in borrowing or lending of securities to a customer, there should be some terms and conditions set in a written agreement. Among them, stating the capacities in which the parties are entering into the agreement whether as principal or agent should be included too.
When a Market Participant engages in borrowing or lending of securities to a customer, there should be some terms and conditions set in a written agreement. Among them, stating the capacities in which the parties are entering into the agreement whether as principal or agent should be included too.
Which of the following option related to additional specific execution requirements for IDBs who handle customer orders is correct?
They are some additional specific execution requirements for IDBs who handle customer. Among them is when Market Participants place orders with special conditions attached, IDBs must accurately relay the said conditions
They are some additional specific execution requirements for IDBs who handle customer. Among them is when Market Participants place orders with special conditions attached, IDBs must accurately relay the said conditions
Which of the following statements are the purposes of generating trade confirmations?
I. The practice of deal confirmation helps to detect discrepancies immediately after the transaction
II. To reduce the operational risk
III. To indicate any kind of false economic details
IV. To give all the details of the trade to the counter parties
It is to be noted that the purposes of generating trade confirmations are as follow
I. The practice of deal confirmation helps to detect discrepancies immediately after the transaction
II. To reduce the operational risk
III. To indicate any kind of false economic details
IV. To give all the details of the trade to the counter parties
It is to be noted that the purposes of generating trade confirmations are as follow
I. The practice of deal confirmation helps to detect discrepancies immediately after the transaction
II. To reduce the operational risk
III. To indicate any kind of false economic details
IV. To give all the details of the trade to the counter parties
Which of the following are the guidance provided by IOSCO Principles?
I: Governance
II: Benchmark Quality
III: Integration
IV: Accountability
IOSCO Principles provide guidance on: i. Governance: Addressing Conflicts of Interest and protecting the integrity of the Benchmark determination process; ii. Benchmark quality: Improving the integrity and quality of Benchmark determination; iii. Methodology: Improving the integrity and quality of adopted Methodologies; iv. Accountability: Establishing complaints processes, documentation requirements and audit reviews.
IOSCO Principles provide guidance on: i. Governance: Addressing Conflicts of Interest and protecting the integrity of the Benchmark determination process; ii. Benchmark quality: Improving the integrity and quality of Benchmark determination; iii. Methodology: Improving the integrity and quality of adopted Methodologies; iv. Accountability: Establishing complaints processes, documentation requirements and audit reviews.
18. The code of conduct for the submitters does not include which of the following points
It is noticeable that the code of conduct for submitters include, integrity, professionalism, ethical standards, providing commentaries on benchmarks, benchmarks that are not overseen by the benchmark administrator and prohibited behavior only.
It is noticeable that the code of conduct for submitters include, integrity, professionalism, ethical standards, providing commentaries on benchmarks, benchmarks that are not overseen by the benchmark administrator and prohibited behavior only.
What are FX and interest rate benchmarks used for
Please note that these benchmarks (FX and Interest Rate) are used for the settlement of contracts, such as NDFs and loans, such as floating rate loans.
Please note that these benchmarks (FX and Interest Rate) are used for the settlement of contracts, such as NDFs and loans, such as floating rate loans.
Which of the following are the stages involved in the process of money laundering?
The three main steps of money laundering is
Placement Stage
Layering Stage
Integration Stage
The three main steps of money laundering is
Placement Stage
Layering Stage
Integration Stage
Which of the following is false about operational risk?
Market Participants should have appropriate processes in place to identify and manage operational risks. The causes of such risk could be internal issues, such as human error or misconduct, inadequate systems or processes, system failures, sabotage or gaps in processes. The risk cannot occur when there is continuity in the process.
Market Participants should also consider operational risks which arise from factors beyond their organisation’s control. Such external events include civil disturbances and natural disasters, time differences and differing industry conventions across countries and terrorism.
Market Participants should have appropriate processes in place to identify and manage operational risks. The causes of such risk could be internal issues, such as human error or misconduct, inadequate systems or processes, system failures, sabotage or gaps in processes. The risk cannot occur when there is continuity in the process.
Market Participants should also consider operational risks which arise from factors beyond their organisation’s control. Such external events include civil disturbances and natural disasters, time differences and differing industry conventions across countries and terrorism.
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