Trading,Clearing and Settlement in Derivatives Market

National Securities Clearing Corporation Ltd.(NSCCL) is a wholly owned subsidiary of___?

• SEBI

• NSE

• BSE

• SBI

A _______ is entered at a stop price above the current market price ?

• Order driven

• Trailing stop order

• Buy stop order

• Stop order

A _________ is a trade order designed to limit an investor’s loss on a position?

• Limit order

• Market order

• Order driven 

• Stop order

Trading on the derivatives segment takes place on all days of the week except ____

• Saturday

• Sunday

• Both saturday and Sunday

• None of the above

A ________ is similar to a stop order

• Stop limit order

• Trailing stop order

• Order driven

• Stop order

Which of the following is NOT a type of margin ?

• Expiry Margin

• Pre-expiry margin

• Maintenance margin

• Initial Margin

Which method used for calculating VAR allows overcoming the problems of limited actual observations?

• Variance Covariance Method

• Historical Method

• Delta-normal Method

• Monte Carlo Method

NSCCL was incorporated in _____ ?

• September 1995

• June 1995

• July 1995

• August 1995

The Securities and Exchange Board of India (SEBI) is not responsible for _________? 

• Ensuring fair practices by companies

• Investor protection

• Improving the earnings of shareholder

• Promoting efficient services by brokers

These derivatives are traded on specialized exchanges. Contracts are standardized and backed by a clearinghouse. Standardization facilitates the creation of a more liquid market for derivatives, however at the cost of flexibility.

All clearing and settling is done through a clearinghouse and the clearinghouse provides a credit guarantee. Which is the correct term?

• Credit Derivatives

• OTC Derivatives market

• Exchanged traded derivatives market

• disadvantages of derivatives