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Question 1 of 20
1. Question
No member or person associated with a member shall:
I. Set unilaterally its own bid or ask in any security, the prices at which it is willing to buy or sell any security, and the quantity of shares of any security that it is willing to buy or sell;
II. Coordinate the prices (including quotations), trades or trade reports of such member with any other member or person associated with a member, or any other person
III. Direct or request another member to alter a price (including a quotation)
IV. Engage, directly or indirectly, in any conduct that threatens, harasses, coerces, intimidates or otherwise attempts improperly to influence another member, a person associated with a member, or any other personCorrect
FINRA Rule 5240. Anti-Intimidation/Coordination
(a) No member or person associated with a member shall:
(1) coordinate the prices (including quotations), trades or trade reports of such member with any other member or person associated with a member, or any other person;
(2) direct or request another member to alter a price (including a quotation); or
(3) engage, directly or indirectly, in any conduct that threatens, harasses, coerces, intimidates or otherwise attempts improperly to influence another member, a person associated with a member, or any other person.Incorrect
FINRA Rule 5240. Anti-Intimidation/Coordination
(a) No member or person associated with a member shall:
(1) coordinate the prices (including quotations), trades or trade reports of such member with any other member or person associated with a member, or any other person;
(2) direct or request another member to alter a price (including a quotation); or
(3) engage, directly or indirectly, in any conduct that threatens, harasses, coerces, intimidates or otherwise attempts improperly to influence another member, a person associated with a member, or any other person. -
Question 2 of 20
2. Question
Under the Securities Act Rule 144A — Private Resales of Securities to Institutions, the requirement that the information be reasonably current will be presumed to be satisfied if:
I. The statement of the nature of the issuer’s business and its products and services offered is as of a date within 12 months prior to the date of resale
II. With regard to foreign private issuers, the required information meets the timing requirements of the issuer’s home country or principal trading markets
III. The securities are sold only to a qualified institutional buyer or to a purchaser that the seller and any person acting on behalf of the seller reasonably believe is a qualified institutional buyer
IV. Offers and sales of securities pursuant to this section shall be deemed not to affect the availability of any exemption or safe harbor relating to any previous or subsequent offer or sale of such securities by the issuer or any prior or subsequent holder thereofCorrect
Securities Act Rule 144A — Private Resales of Securities to Institutions
The requirement that the information be reasonably current will be presumed to be satisfied if:(A) The balance sheet is as of a date less than 16 months before the date of resale, the statements of profit and loss and retained earnings are for the 12 months preceding the date of such balance sheet, and if such balance sheet is not as of a date less than 6 months before the date of resale, it shall be accompanied by additional statements of profit and loss and retained earnings for the period from the date of such balance sheet to a date less than 6 months before the date of resale; and
(B) The statement of the nature of the issuer’s business and its products and services offered is as of a date within 12 months prior to the date of resale; or
(C) With regard to foreign private issuers, the required information meets the timing requirements of the issuer’s home country or principal trading markets.
(e) Offers and sales of securities pursuant to this section shall be deemed not to affect the availability of any exemption or safe harbor relating to any previous or subsequent offer or sale of such securities by the issuer or any prior or subsequent holder thereof.
Incorrect
Securities Act Rule 144A — Private Resales of Securities to Institutions
The requirement that the information be reasonably current will be presumed to be satisfied if:(A) The balance sheet is as of a date less than 16 months before the date of resale, the statements of profit and loss and retained earnings are for the 12 months preceding the date of such balance sheet, and if such balance sheet is not as of a date less than 6 months before the date of resale, it shall be accompanied by additional statements of profit and loss and retained earnings for the period from the date of such balance sheet to a date less than 6 months before the date of resale; and
(B) The statement of the nature of the issuer’s business and its products and services offered is as of a date within 12 months prior to the date of resale; or
(C) With regard to foreign private issuers, the required information meets the timing requirements of the issuer’s home country or principal trading markets.
(e) Offers and sales of securities pursuant to this section shall be deemed not to affect the availability of any exemption or safe harbor relating to any previous or subsequent offer or sale of such securities by the issuer or any prior or subsequent holder thereof.
-
Question 3 of 20
3. Question
Which of the following information must be provided for each transaction that is reported to the System? Unless the contra side will have an opportunity to provide its own trade information, the Reporting Member is responsible for the complete and accurate submission of information for both sides of the trade.
I. Reporting side executing broker as “give-up” (if any)
II. Contra side executing broker
III. Contra side introducing broker in case of “give-up” trade
IV. Contra side Clearing Broker (if other than normal Clearing Broker)Correct
FINRA Rule 7330. Trade Report Input
Which of the following information must be provided for each transaction that is reported to the System? Unless the contra side will have an opportunity to provide its own trade information, the Reporting Member is responsible for the complete and accurate submission of information for both sides of the trade.
I. Reporting side executing broker as “give-up” (if any)
II. Contra side executing broker
III. Contra side introducing broker in case of “give-up” trade
IV. Contra side Clearing Broker (if other than normal Clearing Broker)Incorrect
FINRA Rule 7330. Trade Report Input
Which of the following information must be provided for each transaction that is reported to the System? Unless the contra side will have an opportunity to provide its own trade information, the Reporting Member is responsible for the complete and accurate submission of information for both sides of the trade.
I. Reporting side executing broker as “give-up” (if any)
II. Contra side executing broker
III. Contra side introducing broker in case of “give-up” trade
IV. Contra side Clearing Broker (if other than normal Clearing Broker) -
Question 4 of 20
4. Question
Which of the following refer to the automated system owned and operated by FINRA that is designed to capture order information in NMS stocks and OTC equity securities reported by members for integration with trade and quotation information to provide FINRA with an accurate time sequenced record of orders and transactions?
Correct
FINRA Rule 7410. Definitions
“Order Audit Trail System” shall mean the automated system owned and operated by FINRA that is designed to capture order information in NMS stocks and OTC equity securities reported by members for integration with trade and quotation information to provide FINRA with an accurate time sequenced record of orders and transactions.Incorrect
FINRA Rule 7410. Definitions
“Order Audit Trail System” shall mean the automated system owned and operated by FINRA that is designed to capture order information in NMS stocks and OTC equity securities reported by members for integration with trade and quotation information to provide FINRA with an accurate time sequenced record of orders and transactions. -
Question 5 of 20
5. Question
Rule 5270 does not preclude transactions that the member can demonstrate are unrelated to the material, non-public market information received in connection with the customer order. These types of transactions may include:
I. Transactions where the member has information barriers established to prevent internal disclosure of such information
II. Transactions in the same security related to a prior customer order in that security
III. Transactions to correct bona fide errors
IV. Transactions to offset odd-lot ordersCorrect
FINRA Rule 5270. Front Running of Block Transactions
Rule 5270 does not preclude transactions that the member can demonstrate are unrelated to the material, non-public market information received in connection with the customer order. These types of transactions may include:
(1) transactions where the member has information barriers established to prevent internal disclosure of such information;
(2) transactions in the same security related to a prior customer order in that security;
(3) transactions to correct bona fide errors; or
(4) transactions to offset odd-lot orders.Incorrect
FINRA Rule 5270. Front Running of Block Transactions
Rule 5270 does not preclude transactions that the member can demonstrate are unrelated to the material, non-public market information received in connection with the customer order. These types of transactions may include:
(1) transactions where the member has information barriers established to prevent internal disclosure of such information;
(2) transactions in the same security related to a prior customer order in that security;
(3) transactions to correct bona fide errors; or
(4) transactions to offset odd-lot orders. -
Question 6 of 20
6. Question
The minimum amount of price improvement necessary for a member to execute an order on a proprietary basis when holding an unexecuted limit order in that same security, and not be required to execute the held limit order is as follows:
I. For customer limit orders priced greater than or equal to $1.00, the minimum amount of price improvement required is $0.05 for NMS stocks and the lesser of $0.01 or one-half (1/2) of the current inside spread for OTC equity securities
II. For customer limit orders priced greater than or equal to $0.01 and less than $1.00, the minimum amount of price improvement required is the lesser of $0.01 or one-half (1/2) of the current inside spread
III. For customer limit orders priced less than $0.01 but greater than or equal to $0.001, the minimum amount of price improvement required is the lesser of $0.001 or one-half (1/2) of the current inside spread
IV. For customer limit orders priced less than $0.001 but greater than or equal to $0.0001, the minimum amount of price improvement required is the lesser of $0.0001 or one-half (1/2) of the current inside spreadCorrect
FINRA Rule 5320. Prohibition Against Trading Ahead of Customer Orders
The minimum amount of price improvement necessary for a member to execute an order on a proprietary basis when holding an unexecuted limit order in that same security, and not be required to execute the held limit order is as follows:(a) For customer limit orders priced greater than or equal to $1.00, the minimum amount of price improvement required is $0.01 for NMS stocks and the lesser of $0.01 or one-half (1/2) of the current inside spread for OTC equity securities;
(b) For customer limit orders priced greater than or equal to $0.01 and less than $1.00, the minimum amount of price improvement required is the lesser of $0.01 or one-half (1/2) of the current inside spread;
(c) For customer limit orders priced less than $0.01 but greater than or equal to $0.001, the minimum amount of price improvement required is the lesser of $0.001 or one-half (1/2) of the current inside spread;
(d) For customer limit orders priced less than $0.001 but greater than or equal to $0.0001, the minimum amount of price improvement required is the lesser of $0.0001 or one-half (1/2) of the current inside spread;Incorrect
FINRA Rule 5320. Prohibition Against Trading Ahead of Customer Orders
The minimum amount of price improvement necessary for a member to execute an order on a proprietary basis when holding an unexecuted limit order in that same security, and not be required to execute the held limit order is as follows:(a) For customer limit orders priced greater than or equal to $1.00, the minimum amount of price improvement required is $0.01 for NMS stocks and the lesser of $0.01 or one-half (1/2) of the current inside spread for OTC equity securities;
(b) For customer limit orders priced greater than or equal to $0.01 and less than $1.00, the minimum amount of price improvement required is the lesser of $0.01 or one-half (1/2) of the current inside spread;
(c) For customer limit orders priced less than $0.01 but greater than or equal to $0.001, the minimum amount of price improvement required is the lesser of $0.001 or one-half (1/2) of the current inside spread;
(d) For customer limit orders priced less than $0.001 but greater than or equal to $0.0001, the minimum amount of price improvement required is the lesser of $0.0001 or one-half (1/2) of the current inside spread; -
Question 7 of 20
7. Question
Which of the following Published Trading Information will be presented on FINRA’s web site?
I. Trading Information will be aggregated for members that have executed on average fewer than 200 transactions per day across all NMS stocks during the applicable Trading Information period
II. Trading Information will be aggregated no earlier than one month following the end of the Trading Information month, aggregate volume totals across all NMS stocks
III. Trading Information will be aggregated for members that have executed on average fewer than 200 transactions per day in an NMS stock during the applicable Trading Information period
IV. Trading Information will be aggregated for all Market Participant Identifiers (MPIDs) used by a single member (excluding, if applicable, any MPIDs used by the member for reporting trades executed in its alternative trading system)Correct
INRA Rule 6110 — Trading Otherwise than on an Exchange
6110. Trading Otherwise than on an Exchange(2) Published Trading Information will be presented on FINRA’s web site as follows:
(A) Trading Information will be aggregated for all Market Participant Identifiers (MPIDs) used by a single member (excluding, if applicable, any MPIDs used by the member for reporting trades executed in its alternative trading system).
(B) Trading Information will be aggregated for members that have executed on average fewer than 200 transactions per day across all NMS stocks during the applicable Trading Information period.
(C) Trading Information will be aggregated for members that have executed on average fewer than 200 transactions per day in an NMS stock during the applicable Trading Information period.Incorrect
INRA Rule 6110 — Trading Otherwise than on an Exchange
6110. Trading Otherwise than on an Exchange(2) Published Trading Information will be presented on FINRA’s web site as follows:
(A) Trading Information will be aggregated for all Market Participant Identifiers (MPIDs) used by a single member (excluding, if applicable, any MPIDs used by the member for reporting trades executed in its alternative trading system).
(B) Trading Information will be aggregated for members that have executed on average fewer than 200 transactions per day across all NMS stocks during the applicable Trading Information period.
(C) Trading Information will be aggregated for members that have executed on average fewer than 200 transactions per day in an NMS stock during the applicable Trading Information period. -
Question 8 of 20
8. Question
The ATS demonstrates that:
I. The member subscribers are fully disclosed to one another at all times on the ATS
II. The system does not permit automatic execution, and a member subscriber must take affirmative steps beyond the submission of an order to agree to a trade with another member subscriber
III. The trade does not pass through any ATS account, and the ATS does not in any way hold itself out to be a party to the trade
IV. The ATS does not exchange shares or funds on behalf of the member subscribers, take either side of the trade for clearing or settlement purposes, including, but not limited to, at DTC or otherwise, or in any other way insert itself into the tradeCorrect
The ATS demonstrates that:
I. The member subscribers are fully disclosed to one another at all times on the ATS
II. The system does not permit automatic execution, and a member subscriber must take affirmative steps beyond the submission of an order to agree to a trade with another member subscriber
III. The trade does not pass through any ATS account, and the ATS does not in any way hold itself out to be a party to the trade
IV. The ATS does not exchange shares or funds on behalf of the member subscribers, take either side of the trade for clearing or settlement purposes, including, but not limited to, at DTC or otherwise, or in any other way insert itself into the tradeIncorrect
The ATS demonstrates that:
I. The member subscribers are fully disclosed to one another at all times on the ATS
II. The system does not permit automatic execution, and a member subscriber must take affirmative steps beyond the submission of an order to agree to a trade with another member subscriber
III. The trade does not pass through any ATS account, and the ATS does not in any way hold itself out to be a party to the trade
IV. The ATS does not exchange shares or funds on behalf of the member subscribers, take either side of the trade for clearing or settlement purposes, including, but not limited to, at DTC or otherwise, or in any other way insert itself into the trade -
Question 9 of 20
9. Question
Unless otherwise indicated, which of the following order information must be recorded under this Rule when an order is received or originated? For purposes of this Rule, the order origination or receipt time is the time the order is received from the customer.
I. The time limit during which the order is in force
II. Handling fees, specified by FINRA for purposes of this Rule
III. Any limit or stop price prescribed in the order;
IV. The date on which the order expires, and, if the time in force is less than one day, the time when the order expiresCorrect
FINRA Rule 7440. Recording of Order Information
Unless otherwise indicated, the following order information must be recorded under this Rule when an order is received or originated. For purposes of this Rule, the order origination or receipt time is the time the order is received from the customer.
I. Any limit or stop price prescribed in the order;
II. The date on which the order expires, and, if the time in force is less than one day, the time when the order expires
III. The time limit during which the order is in forceIncorrect
FINRA Rule 7440. Recording of Order Information
Unless otherwise indicated, the following order information must be recorded under this Rule when an order is received or originated. For purposes of this Rule, the order origination or receipt time is the time the order is received from the customer.
I. Any limit or stop price prescribed in the order;
II. The date on which the order expires, and, if the time in force is less than one day, the time when the order expires
III. The time limit during which the order is in force -
Question 10 of 20
10. Question
No member or person associated with a member shall, directly or indirectly, hold any interest or participation in any joint account for buying or selling a designated security, unless such joint account is promptly reported to FINRA. The report should contain which of the following information for each account?
I. Name of the account, with names of all participants and their respective interests in profits and losses
II. A statement regarding the purpose of the account
III. Name of the member carrying and clearing the account
IV. A copy of any written agreement or instrument relating to the accountCorrect
FINRA Rule 6140. Other Trading Practices
No member or person associated with a member shall, directly or indirectly, hold any interest or participation in any joint account for buying or selling a designated security, unless such joint account is promptly reported to FINRA. The report should contain the following information for each account:
(1) Name of the account, with names of all participants and their respective interests in profits and losses;
(2) a statement regarding the purpose of the account;
(3) name of the member carrying and clearing the account; and
(4) a copy of any written agreement or instrument relating to the account.Incorrect
FINRA Rule 6140. Other Trading Practices
No member or person associated with a member shall, directly or indirectly, hold any interest or participation in any joint account for buying or selling a designated security, unless such joint account is promptly reported to FINRA. The report should contain the following information for each account:
(1) Name of the account, with names of all participants and their respective interests in profits and losses;
(2) a statement regarding the purpose of the account;
(3) name of the member carrying and clearing the account; and
(4) a copy of any written agreement or instrument relating to the account. -
Question 11 of 20
11. Question
A member holding an open order from a customer or another broker-dealer shall, prior to executing or permitting the order to be executed, reduce, increase, or adjust the price and/or number of shares of such order by an amount equal to the dividend, payment, or distribution on the day that the security is quoted ex-dividend, ex-rights, ex-distribution, or ex-interest, except where a cash dividend or distribution is less than one cent ($0.01)
The provisions of paragraph above of this Rule shall not apply to which of the following?
I. Orders governed by the rules of a registered national securities exchange
II. Open stop orders to buy
III. Open sell orders
IV. Orders for the purchase or sale of securities where the issuer of the securities has reported a dividend, payment, or distribution pursuant to SEA Rule 10b-17Correct
FINRA Rule 5330. Adjustment of Orders
A member holding an open order from a customer or another broker-dealer shall, prior to executing or permitting the order to be executed, reduce, increase, or adjust the price and/or number of shares of such order by an amount equal to the dividend, payment, or distribution on the day that the security is quoted ex-dividend, ex-rights, ex-distribution, or ex-interest, except where a cash dividend or distribution is less than one cent ($0.01)
The provisions of paragraph above of this Rule shall not apply to which of the following?
I. Orders governed by the rules of a registered national securities exchange
II. Open stop orders to buy
III. Open sell orders
IV. Orders for the purchase or sale of securities where the issuer of the securities has not reported a dividend, payment, or distribution pursuant to SEA Rule 10b-17Incorrect
FINRA Rule 5330. Adjustment of Orders
A member holding an open order from a customer or another broker-dealer shall, prior to executing or permitting the order to be executed, reduce, increase, or adjust the price and/or number of shares of such order by an amount equal to the dividend, payment, or distribution on the day that the security is quoted ex-dividend, ex-rights, ex-distribution, or ex-interest, except where a cash dividend or distribution is less than one cent ($0.01)
The provisions of paragraph above of this Rule shall not apply to which of the following?
I. Orders governed by the rules of a registered national securities exchange
II. Open stop orders to buy
III. Open sell orders
IV. Orders for the purchase or sale of securities where the issuer of the securities has not reported a dividend, payment, or distribution pursuant to SEA Rule 10b-17 -
Question 12 of 20
12. Question
Which of the following about “Defined Limit” is correct?
I. The minimum quotation increment for quotations of $1.00 or above in all ADF-eligible securities shall be $0.01
II. 9.5% for Designated Stocks (except that between 9:30 a.m. and 9:45 a.m. and between 3:35 p.m. and the close of trading, the Defined Limit for Designated Stocks shall be 21.5%)
III. 29.5% for Other NMS Stocks with a price equal to or greater than $1
IV. 31.5% for Other NMS Stocks with a price less than $1.Correct
FINRA Rule 6272. Character of Quotations
The “Defined Limit” shall be:
(i) 9.5% for Designated Stocks (except that between 9:30 a.m. and 9:45 a.m. and between 3:35 p.m. and the close of trading, the Defined Limit for Designated Stocks shall be 21.5%);
(ii) 29.5% for Other NMS Stocks with a price equal to or greater than $1; and
(iii) 31.5% for Other NMS Stocks with a price less than $1.Incorrect
FINRA Rule 6272. Character of Quotations
The “Defined Limit” shall be:
(i) 9.5% for Designated Stocks (except that between 9:30 a.m. and 9:45 a.m. and between 3:35 p.m. and the close of trading, the Defined Limit for Designated Stocks shall be 21.5%);
(ii) 29.5% for Other NMS Stocks with a price equal to or greater than $1; and
(iii) 31.5% for Other NMS Stocks with a price less than $1. -
Question 13 of 20
13. Question
Which of the following refer to Reporting Agent Agreements is correct?
I. Any Reporting Member may enter into an agreement with a Reporting Agent pursuant to which the Reporting Agent agrees to fulfill the obligations of such Reporting Member under this Rule. Any such agreement shall be evidenced in writing, which shall specify the respective functions and responsibilities of each party to the agreement that are required to effect full compliance with the requirements of this Rule
II. All written documents evidencing an agreement described in subparagraph (1) shall be maintained by each party to the agreement
III. Each Reporting Member remains primarily responsible for compliance with the requirements of this rule, notwithstanding the existence of an agreement described in this paragraph
IV. Order information shall be transmitted in electronic form, as may be prescribed by FINRA from time to time, to a receiving location designated by FINRACorrect
FINRA Rule 7450. Order Data Transmission Requirements
Reporting Agent Agreements
(1) Any Reporting Member may enter into an agreement with a Reporting Agent pursuant to which the Reporting Agent agrees to fulfill the obligations of such Reporting Member under this Rule. Any such agreement shall be evidenced in writing, which shall specify the respective functions and responsibilities of each party to the agreement that are required to effect full compliance with the requirements of this Rule.
(2) All written documents evidencing an agreement described in subparagraph (1) shall be maintained by each party to the agreement.
(3) Each Reporting Member remains primarily responsible for compliance with the requirements of this rule, notwithstanding the existence of an agreement described in this paragraph.Incorrect
FINRA Rule 7450. Order Data Transmission Requirements
Reporting Agent Agreements
(1) Any Reporting Member may enter into an agreement with a Reporting Agent pursuant to which the Reporting Agent agrees to fulfill the obligations of such Reporting Member under this Rule. Any such agreement shall be evidenced in writing, which shall specify the respective functions and responsibilities of each party to the agreement that are required to effect full compliance with the requirements of this Rule.
(2) All written documents evidencing an agreement described in subparagraph (1) shall be maintained by each party to the agreement.
(3) Each Reporting Member remains primarily responsible for compliance with the requirements of this rule, notwithstanding the existence of an agreement described in this paragraph. -
Question 14 of 20
14. Question
Participation in the System shall be conditioned upon the initial and continuing compliance with which the following requirements?
I. Execution of, and continuing compliance with, a Participant Application Agreement
II. Membership in, or maintenance of an effective clearing arrangement with a participant of, a clearing agency registered pursuant to the Exchange Act
III. Maintenance of the physical security of the equipment located on the premises of the Clearing Broker to prevent the unauthorized entry of information into the Syste
IV. Maintenance of the physical security of the equipment located on the premises of the participant to prevent unauthorized entry of information into the SystemCorrect
FINRA Rule 7320. Trade Reporting Participation Requirements
Participation in the System shall be conditioned upon the initial and continuing compliance with the following requirements:
(A) execution of, and continuing compliance with, a Participant Application Agreement;
(B) membership in, or maintenance of an effective clearing arrangement with a participant of, a clearing agency registered pursuant to the Exchange Act;
(C) compliance with all applicable rules and operating procedures of FINRA and the SEC;
(D) maintenance of the physical security of the equipment located on the premises of the participant to prevent unauthorized entry of information into the System; andIncorrect
FINRA Rule 7320. Trade Reporting Participation Requirements
Participation in the System shall be conditioned upon the initial and continuing compliance with the following requirements:
(A) execution of, and continuing compliance with, a Participant Application Agreement;
(B) membership in, or maintenance of an effective clearing arrangement with a participant of, a clearing agency registered pursuant to the Exchange Act;
(C) compliance with all applicable rules and operating procedures of FINRA and the SEC;
(D) maintenance of the physical security of the equipment located on the premises of the participant to prevent unauthorized entry of information into the System; and -
Question 15 of 20
15. Question
Which of the following refer to a Registered Reporting ADF Market Maker, or a Registered Reporting ADF ECN?
Correct
FINRA Rule 6220
“ADF Market Participant” or “Market Participant” means a Registered Reporting ADF Market Maker, or a Registered Reporting ADF ECN.Incorrect
FINRA Rule 6220
“ADF Market Participant” or “Market Participant” means a Registered Reporting ADF Market Maker, or a Registered Reporting ADF ECN. -
Question 16 of 20
16. Question
Which of the following refer to any member of FINRA in good standing that uses the OTC Reporting Facility?
Correct
FINRA Rule 6420. Definitions
“OTC Reporting Facility Participant” means any member of FINRA in good standing that uses the OTC Reporting Facility.Incorrect
FINRA Rule 6420. Definitions
“OTC Reporting Facility Participant” means any member of FINRA in good standing that uses the OTC Reporting Facility. -
Question 17 of 20
17. Question
What are the full size of each customer limit order held by the OTC Market Maker?
I. Is priced equal to the bid or offer of such OTC Market Maker for such security
II. Is priced equal to the best bid or best offer of the inter-dealer quotation system in which the OTC Market Maker is quoting
III. Represents more than a de minimis change in relation to the size associated with the OTC Market Maker’s bid or offer
IV. Block size order, unless a customer placing such order requests that the order be displayedCorrect
FINRA Rule 6460. Display of Customer Limit Orders
he full size of each customer limit order held by the OTC Market Maker that:
(A) Is priced equal to the bid or offer of such OTC Market Maker for such security;
(B) Is priced equal to the best bid or best offer of the inter-dealer quotation system in which the OTC Market Maker is quoting; and
(C) Represents more than a de minimis change in relation to the size associated with the OTC Market Maker’s bid or offer.Incorrect
FINRA Rule 6460. Display of Customer Limit Orders
he full size of each customer limit order held by the OTC Market Maker that:
(A) Is priced equal to the bid or offer of such OTC Market Maker for such security;
(B) Is priced equal to the best bid or best offer of the inter-dealer quotation system in which the OTC Market Maker is quoting; and
(C) Represents more than a de minimis change in relation to the size associated with the OTC Market Maker’s bid or offer. -
Question 18 of 20
18. Question
Unless otherwise indicated, which of the following order information must be recorded under this Rule when an order is received or originated? For purposes of this Rule, the order origination or receipt time is the time the order is received from the customer.
I. Handling fees, specified by FINRA for purposes of this Rule
II. Any limit or stop price prescribed in the order;
III. The date on which the order expires, and, if the time in force is less than one day, the time when the order expires
IV. The time limit during which the order is in forceCorrect
FINRA Rule 7440. Recording of Order Information
Unless otherwise indicated, the following order information must be recorded under this Rule when an order is received or originated. For purposes of this Rule, the order origination or receipt time is the time the order is received from the customer.
I. Any limit or stop price prescribed in the order;
II. The date on which the order expires, and, if the time in force is less than one day, the time when the order expires
III. The time limit during which the order is in forceIncorrect
FINRA Rule 7440. Recording of Order Information
Unless otherwise indicated, the following order information must be recorded under this Rule when an order is received or originated. For purposes of this Rule, the order origination or receipt time is the time the order is received from the customer.
I. Any limit or stop price prescribed in the order;
II. The date on which the order expires, and, if the time in force is less than one day, the time when the order expires
III. The time limit during which the order is in force -
Question 19 of 20
19. Question
Which of the information listed below must be provided for each transaction that is reported to the System. Unless the contra side will have an opportunity to provide its own trade information, the Reporting Member is responsible for the complete and accurate submission of information for both sides of the trade?
I. A symbol indicating whether the trade is as principal, riskless principal, or agent
II. Reporting side Clearing Broker (if other than normal Clearing Broker)
III. Transactions effected pursuant to the exercise of an OTC option
IV. Contra side executing brokerCorrect
FINRA Rule 7330. Trade Report Input
The information listed below must be provided for each transaction that is reported to the System. Unless the contra side will have an opportunity to provide its own trade information, the Reporting Member is responsible for the complete and accurate submission of information for both sides of the trade.
I. A symbol indicating whether the trade is as principal, riskless principal, or agent;
II. Reporting side Clearing Broker (if other than normal Clearing Broker);
III. Reporting side executing broker as “give-up” (if any);
IV. Contra side executing broker;Incorrect
FINRA Rule 7330. Trade Report Input
The information listed below must be provided for each transaction that is reported to the System. Unless the contra side will have an opportunity to provide its own trade information, the Reporting Member is responsible for the complete and accurate submission of information for both sides of the trade.
I. A symbol indicating whether the trade is as principal, riskless principal, or agent;
II. Reporting side Clearing Broker (if other than normal Clearing Broker);
III. Reporting side executing broker as “give-up” (if any);
IV. Contra side executing broker; -
Question 20 of 20
20. Question
Participation in the System shall be conditioned upon the initial and continuing compliance with which the following requirements?
I. Execution of, and continuing compliance with, a Participant Application Agreement
II. Membership in, or maintenance of an effective clearing arrangement with a participant of, a clearing agency registered pursuant to the Exchange Act
III. Compliance with all applicable rules and operating procedures of FINRA and the SEC
IV. Maintenance of the physical security of the equipment located on the premises of the participant to prevent unauthorized entry of information into the SystemCorrect
FINRA Rule 7320. Trade Reporting Participation Requirements
Participation in the System shall be conditioned upon the initial and continuing compliance with the following requirements:
(A) execution of, and continuing compliance with, a Participant Application Agreement;
(B) membership in, or maintenance of an effective clearing arrangement with a participant of, a clearing agency registered pursuant to the Exchange Act;
(C) compliance with all applicable rules and operating procedures of FINRA and the SEC;
(D) maintenance of the physical security of the equipment located on the premises of the participant to prevent unauthorized entry of information into the System; andIncorrect
FINRA Rule 7320. Trade Reporting Participation Requirements
Participation in the System shall be conditioned upon the initial and continuing compliance with the following requirements:
(A) execution of, and continuing compliance with, a Participant Application Agreement;
(B) membership in, or maintenance of an effective clearing arrangement with a participant of, a clearing agency registered pursuant to the Exchange Act;
(C) compliance with all applicable rules and operating procedures of FINRA and the SEC;
(D) maintenance of the physical security of the equipment located on the premises of the participant to prevent unauthorized entry of information into the System; and