ACI 3I0-012 Exam Success: ACI Dealing Certificate Complete Study and Preparation Tips

1,239,925.60

1,237,873.80

1,240,694.79

1,242,720.50

Go short of the underlying commodity equal to 50% of the size of the option contract

Go long of the underlying commodity equal to 50% of the size of the option contract

Go long of the underlying commodity equal to more than 50% of the full size of the option contract

Go short of the underlying commodity equal to more than 5O% of the full size of the option contract

CD

Interbank deposit

Classic repo

Treasury bill

3.2281%

3.2278%

3.00%

2.875%

Time stamps on e-trading platforms need to be internally and globally synchronised to ensure appropriate tracking of trades

All records should be archived and appropriate audit trails must be maintained as required by the local Central Bank

Regular tests for loss of access to external liquidity platforms but not loss of service to clients should be undertaken

Testing of the system’s capability to cope with extreme volumes should be carried out annually

Positive, steepening

Positive, flattening

Inverted, steepening

Inverted, flattening

verbal agreements are considered binding

written confirmations always override terms verbally agreed to

deals agreed to verbally can be done subject to documentation

verbal agreements are never to be considered legally binding

No deal is done and the broker should inform both counterparties accordingly.

The deal is done and the broker should inform both counterparties accordingly.

The matter should be resolved in consultation with senior management of the 3 institutions.

The ACI’s Committee for Professionalism will investigate and advise accordingly.

under reference

firm, but not necessarily in marketable amounts

firm, unless otherwise qualified

merely indicative

Daily fixing of EUR interbank deposit rates in the European market

Daily fixing of EUR interbank deposit rates in the London market

Another name for EUR LIBOR

The ECB’s official repo rate

pay 250, receive 1,250, receive 1,750, receive 2,000

receive 250, pay 1,250, pay 1,750, pay 2,000

pay 2,500, receive 12,500, receive 17,500, receive 20,000

receive 2,500, pay 12,500, pay 17,500, pay 20,000

Every 6 months

Yearly

Whenever the BCP procedures are changed

Every 3 months

The dealer should not reveal his future dealing intentions to his counterparty.

The dealer should make his intention to assign clear before transacting.

The dealer should agree the method of assignment before transacting.

The counterparty should specify whether or not assignment would be acceptable in negotiations.

Sell a 1x3 FRA at 1.95%

Buy a 1x3 FRA at 1.98%

Buy a 1x4 FRA at 2.10%

Sell a 1x4 FRA at 2.10%

A nostro account is an account held by a bank in a foreign country in the banks domestic currency.

A nostro account is an account held by a bank in a foreign country for cash collateralising OTC derivative positions with banks in that country.

A nostro account is an account held by a bank in a foreign country in the currency of that country.

A nostro account is an account held by a bank in its home country in a foreign currency.