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

Brokers should only show the names of banks to counterparties who have prime credit ratings.

Brokers should only show the names of banks to counterparties who provide good liquidity to the brokered market.

Brokers should only show the names of banks to counterparties whom they know well.

Brokers should only show the names of bank counterparties if both sides display a serious intention to transact

0.60%

0.949%

1.074%

0.933%

0.525%

0.45%

0.75%

0.375%

7.525322

7.525312

7.524688

7.524678

Economic capital is calculated externally and is the amount of capital the firm should have to support its target credit rating

Economic capital is calculated on an expected shortfall basis with a specific time horizon and confidence level.

Economic capital is used for measuring and reporting risks across a financial organisation.

Economic capital is always lower than regulatory capital because of the more adequate modelling of correlation effects compared to the regulatory approach.

Nothing

A margin call is triggered on the seller

A manufactured payment is made to the seller

The equivalent value plus reinvestment income is deducted from the repurchase price

credit risk

interest rate risk

liquidity risk

currency risk

Investment funds

Credit institutions and central banks

Corporates

Retail and private customers

Gives you the right but not the obligation to sell USD and buy JPY

Gives you the right but not the obligation to buy USD and sell JPY

Gives your counterparty the right but not the obligation to sell USD and buy JPY

Gives your counterparty the right but not the obligation to buy USD and sell JPY

CDS are used to recover funds from defaulted swap counterparties.

CDS provide protection against specified credit events to the party receiving the CDS premium payments.

CDS provide protection against the default of the trade counterparty that buys the CDS.

CDS provide compensation to the protection buyer, should a specified credit event occur to a third party entity.

14th December

15th December

16th December

17th December

Financial institutions have to establish procedures for handling limit breaches that are in accordance with their decision-making hierarchy.

If a partial limit violation does not exceed the overall limit, no reaction is required.

The definition of escalation levels is not required in order to react appropriately to different sorts and intensities of limit breaches.

It is adequate and proper to define reactions only to standard cases of limit violations.

Sales I trading staff

Operations staff

Nostro staff

Front office staff

Management is to proximately inform the local regulator of any suspected drug abuse in either the front office or operations department.

The chief dealer must inform the ACI’s Committee for Professionalism as soon as he suspects any drug or alcohol abuse in his dealing room.

Policies should be developed and clearly announced, including penalties for individuals who are found to be substance abusers.

Management should take all reasonable steps to stop the abuse of drugs, including alcohol and other substances.

the prime-broker and the executing dealer only

the prime-broker and the executing dealer, and between the executing dealer and the client

the prime-broker and the executing dealer, and between the prime-broker and the client

the prime-broker and the client, and between the executing dealer and the client