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WorksheetsEUREX Exam
Total questions: 94
Worksheet time: 58mins
What tasks and rights does the Trading Surveillance Office have?
Impose sanctions on breaking the rules
Systematically and completely collect all data regarding futures and options trading
Demand information form trading participants insofar as it is necessary to fufill its duties
Right to access the buisness premises of the trading participants during regular working hours
What sanctions can the Disciplinary Committee impose in case of a rule violation?
Imposing a fine against an exchange trader for breaching the crossing rules
Excluding an exchange participant from trading for up to 30 trading days
Withdrawing an exchange trader admission
Reprimanding an exchange trader
Which issues are sanctioned by the Disciplinary Committee?
Order entries which can potentially affect an artificial price level
Trades based on insider information
Knowingly entry of opposite orders in continuous trading by one exchange tradre without cross request
Trades that lead to erroneous signals for bid and ask
Which of the following is not a task of thr Trading Surveillance Office?
Sanctioning of exchange traders for breaking exchange related rules
Collecting all data regarding futures and options trading
Monitoring the settlement of exchange transactions
Informing the Exchange Supervisory Authority if an exchange participant has breached exchange related rules
What is the Trading Surveillance Office not allowed to do in connection with the performance of its duties?
Conduct inspections of business premises of exchange participants
Demand information
Suspend trading if insider trading is suspected
Inform the Board of Management if it is suspected that an exchange participant has breached exchange related rules
Which statement in connection with the Trading Surveillance Office or the Disciplinary Committee is correct?
The Trading Surveillance Office can exclude exchange traders from trading up to 30 trading days
The Disciplinary Committee has the right to withdraw an exchange trader's admission to trading
The Trading Surveillance Office decides on the suspension of trading.
None of the above.
It is forbidden to enter orders into the system without an intention to trade.
True
False
Orders whcih are not in line with common market practice are unproblematic in terms of the market integrity clause; the clause is applied to trades only.
True
False
In order to ensure orderly futures and options trading, trading surveillance office verifies electronic trading strategies and trading algorithms of an exchange participant prior to the application.
True
False
When can the management board of the exchange instruct cash settlement instead of physical delivery upon the exercise of stock options?
To maintain orderly market conditions
Due to a high number of options in the money
In case of a delisting of the underlying
Due to a temporarily trading suspension of the underlying
Which measures can the management board of the exchange take in case of an underlying is delisted?
Replacement of the underlying for open positions
Cash settlement instead of physical delivery
Discontinuation of trading and early termination of affected derivatives transactions
Automatically close open positions and reopen them in an equivalent underlying
When can the management board of the exchange suspend trading in futures and options contracts?
If orderly exchange trading appears to be temporarily threatened
If an exchange participant has technical problems
In order to protect the public
If the trading surveillance office suspects insider trading in a product
What is the purpose of position limits in trading?
They are the basis for margin calculation
To avoid a delivery bottleneck in the underlying for contracts with physical delivery
They define the entitlement to the default fund
To avoid volatile market conditions
What are position limits?
A minimum number of contracts in a product which an exchange participant must hold for its own account or for one of its customers
A maximum number of contracts in a product which an exchange participant must hold for its own account or for one of its customers
A volume weighted average price for contracts in a product which an exchange participant may not exceed for its own account or for one of its customers
None of the above
Which statement regarding an exceeded position limit is wrong?
Immediate reduction of the position to discontinue the exceeding of the position limit
If positions are not reduced within a period of time determined by the management board of Eurex Deutschland, the management board can take measures to reduce the relevant positions
Upon request by the trading surveillance office, an exchange participant must provide evidence with regard to a single position of its customer account, irrespecitve of a position limit bieng exceeded
A position reduction must be carried out until 14:00 CET of the next trading day
What is the procedure in accordance with the exchange rules, if physical delivery for futures contracts is excluded?
The positions will be closed out at the last traded price before the exclusion of physical delivery was announced
All rights and obligations shall be deemed to be performed upon the last daily settlement payment
The opening price of the previous day is used as settlement price
None of the above
Which statement in connection with a suspension of futures and options trading is correct?
During the suspension it is possible to enter orders
Only existing quotes will be deleted
All existing orders and quotes will be deleted
It is possible to enter orders and quotes during the suspension
Which statement in connection with a suspension of futures and options trading is wrong?
All existing orders and quotes will be deleted
It is not possible to exercise open positions
It is not possible to close out open positions
Futures and options trading is resumed within the trading phase in which the suspension was triggered
What is regulated by the market integrity clause?
Anonymity of the order book
Equal technical access for all exchange participants
Prohibition of entering orders in the trading system, which have the potential to influence the price in an erroneous or misleading way
Tasks of the trading surveillance office
Which statement regarding the order to trade ratio is wrong?
Traidng participants are obligated to ensure an adequate ratio between order entries and contracts traded
Trading participants are obligated to ensure an adequate ratio between order modifications and contracts traded
Trading participants are obligated to ensure an adequate ratio between quote entries and contracts traded
Trading participants are obligated to ensure and adequate ratio between limit and market orders
Which special provisions apply to algorithmic orders and quotes?
They must be marked in the trading system
The trader, who is responsible for the entry, needs and additional qualification
They are only allowed in continuous trading but not in auctions
It is not allowed to enter them during fast market status
Each exchange participant is always obliged to ensure the presence of an enough qualified personnel on its buisness premises and telephone availability during all trading periods
True
False
The board of management of the exchange takes appropriate measures for emergency planning and management for each exchange participant
True
False
Each exchange participant is obliged to name a contact person for the event of a technical disruption
True
False
Which possibilities do exchange traders have if their front-end system is temporarily non-functional?
Use of the "Trading-on-behalf" service to enter, modify or delete orders by Derivatives Trading Operations
Use of the mass deletion functionality
Use of another trader ID of the company which is not affected by this technical problem
Use of the emergency location offered by Eurex Deutschland
For which activities in on-exchange Trading-on-Behalf does the exchange participant have to identify itself with a PIN in addition to the active user ID?
Order entry
Quote deletion
Information on existing orders
Order modification
Which statements regarding trading system access are correct?
An admitted exchange trader obtains a personal user ID
By passing the trader examination an access code to the trading system is automatically assigned to the trader
The personal user ID may only be used by the person it has been assigned to
Exchange participants and all owners of the user IDs are obliged to immediately notify Eurex Deutschland of any changes in connection with a user ID
Cross-IDs for the Self-Match Prevention functionality will be assigned by the exchange.
True
False
To avoid a pre-arranged trade from breaching the rules, a trade request must always be entered beforehand.
True
False
Two orders of an exchange participant which are entered knowingly and could immediately be executed against each other, are only admissible if one individual involved has entered a rule-consistent trade request in advance.
True
False
Which statement regarding cross trades in continuous trading is correct?
They are admissible. If there was no knowledge about the immediate executable orders.
Knowing entry of opposite orders which are immediately executable is admissible, if a rule-consistent trade request has been entered before
When a trade request is placed, order entry must e performed in a predefined time window so that a cross trade is admissible
All answers are correct
Which functionality can be used to avoid crossings in continuous trading?
Match request
Quote request
Self-Match prevention
None of the above
In case of option transactions concluded in the opening auction and outside the mistrade range, a price correction is always conducted despite the request for cancellation
True
False
If the minimum damage is 25,000 euros, a mistrade application can be submitted up to 3 hours after the conclusion of the transaction (but before expiration of 30 minutes after termination of the trading period of the respective product on the trading day)
True
False
All business parties i.e. the discriminated and the benefited exchange participant are entitled to submit a mistrade application
True
False
Which of the following statements in connection with a cancellation of a transaction are correct?
The application has always to be submitted within 30 minutes after the transaction was concluded.
In order that the trading surveillance office cancels a transaction, the price of the transaction must deviate more than the mistrade range from the reference price
The management board of the exchange determines the mistrade ranges
If the minimum damage exceeds 25,000 Euros, a mistrade application can be submitted after 30 minutes of the conclusion of the transaction
Which of the following statements in connection with a cancellation of a transaction is wrong?
In case of option transactions concluded in the opening auction the benefited exchange participant can choose between cancelation of the transaction or price correction
In order that the management board of the exchange cancels a transaction, the price of the transaction must deviate more than the mistrade range from the reference price
The benefited exchange participant can always choose between cancelation of the transaction or price correction
All business parties are entitled to submit a mistrade application
Which details are mandatory for a mistrade application?
Time of execution (matching) of the order or quote
Name of contract
Price of executed transaction
Company of applicant and name of exchange trader including Eurex uder ID
If an off-book trade is concluded via the T7 Entry Service (TES trade), the TES offer conditions have to be entered within 15 minutes by an exchange participant after the agreement to conclude the trade at EUREX Deutscheland
True
False
The TES offer conditions have to be confirmed by the counterparty within 15 minutes after the entry
True
False
Eurex EnLight is a selective request-for-quote service which enables a trading participant ('requester') to call for offers from one or more trading participants ("responders") for the conclusion of one or several off-book trades ("Eurex EnLight trades").
True
False
Which statement regarding TES trades is correct?
There are no contract specifcations for futures and options
Trades are concluded outside the central order book
Trades do result in an exchange price
There is no time limit for entering off-book trades into the T7 Entry Service after the counterparties have agreed on the trade
Which statement regarding cross trades in continuous trading is correct?
They are admissible. If there was no knowledge about the immediate executable orders
Knowing entry of opposite orders which are immediately executable is admissible, if a rule-consistent trade request has been entered before
When a trade request is placed, order entry must be performed in a predefined time winodw so that a cross trade is admissible
All answers are correct
Which statement does not apply to Eurex Enlight trades?
A requester can call for firm or indicative quotes to buy or sell off-book instruments from one or more respondents
Eurex EnLight trades are displayed in the daily reports generated by the Eurex system and are marked as on-book trades
The requester can accept one or more quotes from one or more responders in a request-for-quotes session
Eurex EnLight trades may be cancelled by the Board of Management of Eurex Deutschland in the event of erroneous or incorrect entries if all Exchange Participants involved agree
Which statement regarding off-book trades (T7 Entry Service) is correct?
The TES offer conditions have to be confirmed 15 mionutes after entry
The TES offer conditions can also be entered by an exchange participant who is not involved as counterparty in the trade
The TES offer conditions can only be confirmed by the exchange participants involved in the trade
All answers are correct
Separte order books are maintained for complex instruments
True
False
In off-book trading, orders and quotes are matched automatically
True
False
Identical trading parameters apply to simple instruments (outright contracts) of a given product
True
False
Which statements are true?
In on-book trading, the order book is anonymous
Complex instruments may only be traded off-book
Only limit orders are supported
During periods of stressed market conditions, other values may apply to certain parameters
What instrument status can complex instrument have?
Continuous
Book
Auction
Closed
Which statements regarding complex instruments are true?
They are exclusively defined by the Exchange.
Not all order types are supported
They are only available in off-book trading.
They comprise various simple instruments (legs).
Which statements regarding products and instruments are true?
Instruments ODAX Oct19 and ODAX Mar2020 belong to product ODAX
Simiple instruments of the same product have identical trading parameters for ordre book trading
Each contract month of a futures contract represents an instrument
Each instrument has an ISIN code
Which statements regarding the Auction instrument status are true?
Order and quotes can be entered
A closing auction is carried out for all products
The potential auction price (or the best bid/ask limit) is published
Orders and quotes cannot be modified
Which statements do not apply to Continuous instrument status?
Only the best bid limit and the best ask limit are published ("top of book")
Market data is published on an aggravated basis (per limit)
Continuous trading is interrupted by an intraday auction
For certain instruments, continuous trading may be interrupted by a volatility auction.
Which statements regarding the Book (Pre- and Post-Trading) instrument status are true?
The potential auction price (for the best bid/ask limit) is published
Quotes cannot be entered.
No current market data is published
Orders can be modified
Which statements regarding continuous trading are true?
It starts with an auction phase for all instruments (simple and complex)
In the event of a crossed order book, uncrossing takes place prior to the start of continuous trading
Several allocation methodds are used for order execution
Market data is published on an aggregated basis (per limit)
What are the location methods in continuous trading?
Price/Time priority
Value/Time priority
Pro-rata allocation
Time pro-rata allocation
What applies to Restricted instrument status?
Trading in the instrument is suspended
Quotes are automatically deleted
No current market data is published
All answers are correct
What statement does not apply to Closed (start of day/end of day) instrument status?
No current market data is published
Quotes are automatically deleted
Orders can be modified
No matching takes place
When is the T7 Entry Service (TES) available during the trading day?
During product-specific off-book trading period specified in the contract specifications
From the start of the (on-book) pre-trading period
Only during the (on-book) post-trading period.
Only after the (on-book) closing period
Which statement regarding End-Of-Day Processing is untrue?
Pending TES trades are deleted
Pending TES trades are transferred to the next buisness day
Orders whose validity has elapsed are deleted
Contracts which have reached their expiry/maturity data are deleted
Which statement regarding Fast Market Status is correct?
Non-persistent orders are deleted
Quotes are automatically deleted
Wider price corridors apply to validation upon order entry
All instruments are in Restricted status
Which status does not exist?
Holiday
Halt
Fast Market
All of th eabove exist
It is not possible to enter market orders for equity options
True
False
It is not possible to enter stop orders for equity options.
True
False
A market order in a Fixed Income Futures product cannot be entered with the restriction BOC (Book-or-Cancel)
True
False
Which statements apply to Immediate-Or-Cancel (IOC) orders?
IOC orders are executed immediately and in full, or to the extent possible
Any unexecuted parts are entered into the order book
Any unexecuted parts of the order are cancelled immediately.
IOC orders are not available for futures contracts
Which statements apply to order entry?
A Client ID must always be assigned
No new orders can be entered during a volatility auction
A Trading Capacity (trading account) must always be assigned
Not all order types can be used for each instrument
Which statements are true, at the time of order entry, for One-Cancels-the-Other (OCO) orders?
The stop limit of a sell OCO order must be higher than the highest bid limit in the order book.
The stop limit of a sell OCO order must be lower than its limit, and lower than the highest ask limit of the order book.
It has a limit and stop limit
No further validity constraints are possible.
Which of the following orders can be entered in a futures contract if the last traded price was 5056.5?
Buy market order for 10 contracts, Immediate-Or-Cancel(IOC)
Stop buy order for 10 contracts, stop limit 5123.5
Stop sell order for 10 contracts, stop limit 5066
Sell limit order for 10 contracts at 5090, Good-till-Cancelled (GTC)
Which of the following orders can be entered in an ODAX contract if the last traded price was 50.6?
Buy market order for 10 contracts
Stop buy order for 10 contracts, stop limit 59
Buy limit order for 10 contracts at 58, Immediate-Or-Cancel (IOC)
Buy limit order for 10 contracts at 28, Good-till-Cancelled (GTC)
Which order attributes are mandatory?
open/close indicator
Client ID for customer orders
Limit
Algo ID provided that the investment decision was predominately taken by an algorithm
How are stop orders triggered?
Based on the best bid or ask limit
Based on the last (traded) price
Based on auction prices (including the closing auction)
All buy stop orders and sell stop orders having the same stop limit are triggered simultaneously
Which statement does not apply to Book-or-Cancel (BOC) orders?
They are never executed immediately upon entry
They must have a limit
They can be entered as limit orders or market orders
No further trading restrictions are possible
Which trading restriction can be selected for auctions?
Closing auction only
Opening auction only
Volatility auction only
Auction only
Which attribute is mandatory for client orders?
Trading Capacity A (Agent)
ClientID
Number of Contracts
All above answers are correct
The attributes not mandatory for proprietary orders?
Trading Capacity
ClientID
Investment Qualifier
Investment ID
Which statement regarding the flagging of algorithmic order is false?
Orders must have Execution Qualifier "22".
The "Execution Identifier" must contain the Algo ID.
The Algo ID is allocated by the Exchange.
Eurex Deutschland must provide data identifying the algorithm to BaFin (Federal Financial Supervisory Authority).
An extreme price deviation in a complex instrument triggers a volatility interruption.
True
False
The parameters for volatility interruptions are set in a way that volatility interruptions only occur in extreme market situations.
True
False
Volatility interruptions are only triggered in simple futures instruments.
True
False
Which protection mechanisms are generally available?
Volatility interruption - if the potential execution price deviates extremely from the last traded price
Volatility interruption - if the price of a new trade deviates extremely from the last traded price
Price corridors for price reasonability checks of the order limit upon order entry
Market Order Matching Range
Which pre-trade checks is a trading venue required to perform , persuant to MiFID II?
Upon entry limit orders must be validated against defined price corridors.
A maximum order value must be defined for each other.
A maximum quantity per order must be defined for each trader.
The principle of dual control must be observed when entering market orders.
Which statements apply to volatility interruptions (volatility auctions)?
The order book is fully visible during the volatiltiy auction.
During volatility auction, the best bid and best ask limit or the potential auction price is/are published.
The parameters (price corridors and time intervals) which trigger a volatility auction are not published.
Matching/uncrossing takes place in the same way as with a regular auction.
Which obligations must a Regulatory Market Maker fulfil?
Quoting during stressed market conditions and in exceptional circumstances
Posting firm, simultaneous two-way quotes in at least one product
Participation during at least 80% of continuous trading hours
Participation during at least 50% of continuous traidng hours
Which statments regarding Market Making are correct?
No quotation obligations apply if the Exchange's Management Board has announced exceptional circumstances.
Firm, simultaneous two-way quotes must be quoted in at least one product
A distinction is made between Regulatory Market Making and Liquidity Provisioning (Eurex Liquidity Provider)
Liquidity Providers may choose between various Market Making building blocks.
A trading vanue must define requirements for certain market conditions, as a prerequisite for the provision of additional liqudity. Which statements are true?
The Exchange's Management Board decides on whether exceptional circumstances prevail and makes a corresponding announcement (via a Newsboard Message).
No quotation obligations apply during stressed market conditions.
Less stringent quotation obligations apply for Liquidity Providers during stressed market conditions.
No quotation obligation apply during exceptional circumstances.
If an opening price has been determined in a futures contract, all excisting market orders are executed at this price.
True
False
No time priority applies to Equity Index Futures contracts in continuous trading.
True
False
The Market Order Matching Range is active for futures and options contracts
True
False
Which statements regarding on-book matching are correct?
Product-specific allocation methods apply in continuous trading?
Price/time priority applies to all products in continuous trading.
The order book is open during auctions, with accumulated volumes shows for each limit
The principle of maximum volume execution applies during auctions
Which statements regarding on-book matching are correct?
The same price-determination rules apply to continuous trading and to auctions.
Partial executions are possible in continuous trading and in auctions
Auction prices are determined in accordance with the principle of maximum volume execution
An exchange price can only be determined if a Regulatory Market Maker quote was involved in price determination
Which basic principles apply to on-book matching?
Special rules apply to market orders in continuous trading
The principle of maximum volume execution apples during auction
During continuous trading, each new incoming order is immediately checked for executability, and matched to the extent possible
Ordres always executed according to the price/time priority
Which statement does not apply to auction price determination?
Following price determination/uncrossing, the best bid limit is lower than the best ask limit.
The auction price is not lower than the best bid limit, and not higher than the best ask limit remaining in the order book following price determination.
All existing market orders are executed.
Market orders enjoy priority over limit orders.
