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Question 1 of 10
1. Question
According to FINRA Rule 6700 Series ‘Trade Reporting and Compliance Engine – TRACE’, of whom does “TRACE-Eligible Security” not include a debt security?
Correct
“TRACE-Eligible Security” does not include a debt security that is issued by foreign sovereign or a Money Market Instrument.
Incorrect
“TRACE-Eligible Security” does not include a debt security that is issued by foreign sovereign or a Money Market Instrument.
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Question 2 of 10
2. Question
According to FINRA Rule 6700 Series ‘Trade Reporting and Compliance Engine- TRACE’, which customer is included in the term “Party to a Transaction”?
Correct
In “Party to a Transaction” term, a customer is a broker-dealer that is not a FINRA member.
Incorrect
In “Party to a Transaction” term, a customer is a broker-dealer that is not a FINRA member.
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Question 3 of 10
3. Question
According to FINRA Rule 6720 ‘Participation in TRACE’, how many MPIDs are permitted to an Alternative Trading System to use?
Correct
An ATS is permitted to use two separate MPIDs to use only; one is used exclusively to report transactions to TRACE and other MPID is used exclusively to report transactions to equity trade reporting facilities like the Alternative Display Facility.
Incorrect
An ATS is permitted to use two separate MPIDs to use only; one is used exclusively to report transactions to TRACE and other MPID is used exclusively to report transactions to equity trade reporting facilities like the Alternative Display Facility.
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Question 4 of 10
4. Question
According to FINRA Rule 6730 ‘Transaction Reporting’, at what specified timeframe, transaction reported would be designated as “late”?
Correct
Transaction must be reported within the 15 minutes of The Time of Execution (except for particularly specified) or else will be designated as “late”.
Incorrect
Transaction must be reported within the 15 minutes of The Time of Execution (except for particularly specified) or else will be designated as “late”.
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Question 5 of 10
5. Question
According to FINRA Rule 6730 ‘Transaction Reporting’, in what specifically type of security are transactions in that are executed before the issuance of the security must be reported no longer than the first settlement date of the security?
Correct
Collateralized Mortgage Obligations (“CMOs”) are those complex debt securities that transactions in Securitized Products are. These are executed before the issuance of the security must be reported no later than the first settlement date of the security.
Incorrect
Collateralized Mortgage Obligations (“CMOs”) are those complex debt securities that transactions in Securitized Products are. These are executed before the issuance of the security must be reported no later than the first settlement date of the security.
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Question 6 of 10
6. Question
According to FINRA Rule 6730 ‘Transaction Reporting’, which of the following must be there in each TRACE trade report?
a) Time of Execution
b) Date of settlement
c) A symbol indicating whether the transaction is a buy or a sellCorrect
Each TRADE trace report must contain;
(1) CUSIP number or if a CUSIP number is not available at the Time of Execution, a similar numeric identifier (e.g., a mortgage pool number) or a FINRA symbol;
(2) The size (volume) of the transaction;
(3) Price of the transaction (or the elements necessary to calculate price, which are contract amount and accrued interest) or, for When-Issued Transactions in U.S. Treasury Securities executed before the Auction for the security, the yield as required by paragraph (d)(1) of this Rule;
(4) A symbol indicating whether the transaction is a buy or a sell;
(5) Date of Trade Execution (“as/of” trades only);
(6) Contra-party’s identifier (MPID, customer, or a non-member affiliate, as applicable);
(7) Capacity — Principal or Agent (with riskless principal reported as principal);
(8) Time of Execution;
(9) Reporting side executing broker as “give-up” (if any);
(10) Contra side Introducing Broker in case of “give-up” trade;
(11) The commission (total dollar amount), if applicable;
(12) Date of settlement;
(13) If the member is reporting a transaction that occurred on an ATS pursuant to Rule 6732, the ATS’s separate MPID obtained in compliance with Rule 6720; and
(14) Such trade modifiers as required by either the TRACE rules or the TRACE users guide.Incorrect
Each TRADE trace report must contain;
(1) CUSIP number or if a CUSIP number is not available at the Time of Execution, a similar numeric identifier (e.g., a mortgage pool number) or a FINRA symbol;
(2) The size (volume) of the transaction;
(3) Price of the transaction (or the elements necessary to calculate price, which are contract amount and accrued interest) or, for When-Issued Transactions in U.S. Treasury Securities executed before the Auction for the security, the yield as required by paragraph (d)(1) of this Rule;
(4) A symbol indicating whether the transaction is a buy or a sell;
(5) Date of Trade Execution (“as/of” trades only);
(6) Contra-party’s identifier (MPID, customer, or a non-member affiliate, as applicable);
(7) Capacity — Principal or Agent (with riskless principal reported as principal);
(8) Time of Execution;
(9) Reporting side executing broker as “give-up” (if any);
(10) Contra side Introducing Broker in case of “give-up” trade;
(11) The commission (total dollar amount), if applicable;
(12) Date of settlement;
(13) If the member is reporting a transaction that occurred on an ATS pursuant to Rule 6732, the ATS’s separate MPID obtained in compliance with Rule 6720; and
(14) Such trade modifiers as required by either the TRACE rules or the TRACE users guide. -
Question 7 of 10
7. Question
According to FINRA Rule 6730 ‘Transaction Reporting’, which transaction(s) a member must report for in-house cross transactions?
Correct
A member must report two transaction reports for in-house cross transactions;
i) member’s purchase transaction
ii) member’s sale transactionIncorrect
A member must report two transaction reports for in-house cross transactions;
i) member’s purchase transaction
ii) member’s sale transaction -
Question 8 of 10
8. Question
According to FINRA Rule 6730 ‘Transaction Reporting’, which Securitized Product indicator should be selected if the transaction is Stipulation Transaction?
Correct
Securitized Product Indicators are:
(i) “.O,” if the transaction is a Specified Pool Transaction
(ii) “.N,” if the transaction is a Stipulation Transaction
(iii) “.D,” if the transaction is a Dollar Roll
(iv) “.L,” if the transaction is a Dollar Roll and a Stipulation TransactionIncorrect
Securitized Product Indicators are:
(i) “.O,” if the transaction is a Specified Pool Transaction
(ii) “.N,” if the transaction is a Stipulation Transaction
(iii) “.D,” if the transaction is a Dollar Roll
(iv) “.L,” if the transaction is a Dollar Roll and a Stipulation Transaction -
Question 9 of 10
9. Question
According to FINRA Rule 6731 ‘Exemption from Trade Reporting Obligation for Certain Alternative Trading Systems’, which of the following must be there to complete the criteria of granting an exemption by the staff?
Correct
The staff will only grant exemption to those whose trades are between ATS subscribers that are both FINRA members. Moreover, it is also required to keep in mind that ATS demonstrates that the system does not permit automatic execution.
Incorrect
The staff will only grant exemption to those whose trades are between ATS subscribers that are both FINRA members. Moreover, it is also required to keep in mind that ATS demonstrates that the system does not permit automatic execution.
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Question 10 of 10
10. Question
According to FINRA Rule 6731 ‘Exemption from Trade Reporting Obligation for Certain Alternative Trading Systems’, which member subscriber’s trades must be reported to FINRA accordance to Rule 6730?
Correct
Each member subscriber that satisfies the definition of “Party to a Transaction” shall report all trades to FINRA in accordance to Rule 6730.
Incorrect
Each member subscriber that satisfies the definition of “Party to a Transaction” shall report all trades to FINRA in accordance to Rule 6730.