WorksheetsClearing Settlement and Risk Managment
Total questions: 14
Worksheet time: 7mins
Name
Class
Date
1.
1. Clearing function of clearing corp is
a)
a) Doing multilateral netting.
b)
b) Clearing agency guarantes that all contracts which are traded will be honoured.
c)
c) Have devised mechanism to handle exceptional situations.
d)
d) All of the above.
e)
Pluto
2.
2. When are clearing obligation discharged .
a)
i) an acceptance
b)
ii) an execution
c)
iii) an settlement
d)
iv) Recording in trade/ order register.
3.
3. On arriving at settlement days
a)
i) All Intervening holidays are excluded
b)
ii) Intervening holidays / Saturday/Sunday are excluder
c)
iii) T+2 settlement happens in 3days
d)
Only bannk holidays are excluded
4.
4. clearing banks are intemediary between
a)
a) member + clearing corporation
b)
b) member + stock exchange
c)
c) buyer + seller
d)
d) member + depository
5.
5. Settlement in cash market-
a)
a) T+2
b)
b) T+1
c)
c) T+0
d)
d) T+2 / T+1
6.
6. Who are custodians-
a)
a) Institutional Intermediaries holding funds on behalf of trading member.
b)
b) Market Intermediaries holding funds on behalf of banks Insurance, M.F. etc.
c)
c) Custodians Banks holding funds on behalf of banks, insurance, M.F. etc.
d)
d) Institutional Intermediaries holding funds on behalf of banks, Insurance, M.f. etc.
7.
7. Settlement obligation are computed using
a) Pre defined methodology
b) Pre estimated methodology
c) Pre determined methodology
d) Market driven methodology
a)
i) only a
b)
ii) only a+b
c)
iii) a,b,c
d)
iv) market driven methodology
8.
8. Which of the following is not a clearing corporation?
a)
a) National Stock Exchange (NSE)
b)
b) NSE Clearing Limited (NCL)
c)
c) ICCL (International Clearing Corp.Ltd.)
d)
d) Metropolition Clearing Corp. of India Ltd. ( MCCIL)
9.
9. Which statement about auction of securities is false.
a)
a) Auction is resorted when there is excess/ abundance in delivering by seller broker.
b)
b) Shares bought under auction are delivered to buying broker.
c)
c) Auction taken place when selling broker fails to deliver the shares.
10.
10. In the case of shortage in delivery by a seller broker who fulfills the obligation towards buying trading member
a)
a) Seller broker
b)
b) Clearing corporation
c)
c) Stock Exchange
d)
d) Buying broker
11.
11. Process of novation addresses.
a)
a) New Securities issuance risk
b)
b) Default in multi- lateral netting scenario risk.
c)
c) Clearing corporation risk.
d)
d) Counter Party risk.
12.
12. Risk containment measures include-
a) Capital adequacy requirement of member
b) Online monitoring of members position.
c) Settlement of trade
d) Protection from default of client.
a)
i) only a
b)
ii) only b
c)
iii) a+b
d)
iv) b+d
13.
13. Who ensures that funds are available with clearing bank for making payout.
a)
a) Buying broker
b)
b) Selling broker
c)
c) Clearing member
d)
d) Clearing bank
14.
14. A trade has taken place on Thursday. Its payout will be
a)
a) Friday
b)
b) Monday
c)
c) Tuesday
d)
d) Saturday
100 %
