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Question 1 of 10
1. Question
In implementing the research and information programs, what shall be provided by the Commission to the Congress plans?
Correct
The annual report of the Commission shall be provided together with the findings of implementing the research and information programs. Under the Commodity Exchange Act, part of its ongoing operations is to maintain and establishresearch and information programs.
Incorrect
The annual report of the Commission shall be provided together with the findings of implementing the research and information programs. Under the Commodity Exchange Act, part of its ongoing operations is to maintain and establishresearch and information programs.
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Question 2 of 10
2. Question
Which of the following requirements are needed for Introducing Broker (IB) registration?
I. Designate a Security Manager in order to obtain secure access to NFA’s Online Registration System (ORS)
II. Satisfy compliance requirements for IB applicants
III. Complete online Annual Questionnaire
IV. Submit fingerprint cardsCorrect
In an Introducing Broker registration, to register as an NFA member and as an Introducing Broker (IB) the said requirements must be passed. They should also complete an online form (Form 7-R) and an online NFA membership application. Lastly, they should also pay a non-refundable application fee of $200 and IB membership dues.
Incorrect
In an Introducing Broker registration, to register as an NFA member and as an Introducing Broker (IB) the said requirements must be passed. They should also complete an online form (Form 7-R) and an online NFA membership application. Lastly, they should also pay a non-refundable application fee of $200 and IB membership dues.
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Question 3 of 10
3. Question
Which of the following is not a reason in establishing and maintaing research and information program as part of the Commission’s ongoing operations?
Correct
The research and information programs are established to determine the feasibility of trading by computer. This computer consists of the modern informatoin system technology in the electronic data processing. It also assists in the development of educational materials regarding the dissemination of futures trading. This also carries out the general purposes of the Commodity Exchange Act.
Incorrect
The research and information programs are established to determine the feasibility of trading by computer. This computer consists of the modern informatoin system technology in the electronic data processing. It also assists in the development of educational materials regarding the dissemination of futures trading. This also carries out the general purposes of the Commodity Exchange Act.
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Question 4 of 10
4. Question
Which of the following requirements must be filed by an Introducing Broker (IB) for its principals and associated persons?
I. Submit fingerprint cards
II. Satisfy proficiency requirements for each sole proprietor, associated person, and forex associated person; effective January 31, 2020, swaps Associated Persons will be required to complete NFA’s Swaps Proficiency Requirements by the compliance date of January 31, 2021
III. Complete online Annual Questionnaire
IV. Complete online Form 7-RCorrect
The abovementioned statements are requirements needed to be filed by an IB for its principals and associated persons. For each associated person and principal, the required form that needs to be completed is online Form 8-R and should pay a non-refundable application fee of $85.
Incorrect
The abovementioned statements are requirements needed to be filed by an IB for its principals and associated persons. For each associated person and principal, the required form that needs to be completed is online Form 8-R and should pay a non-refundable application fee of $85.
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Question 5 of 10
5. Question
Under the Commodity Exchange Act, who may register as a swap data repository?
Correct
The derivatives clearing organization may register as a swap data repository. A derivatives clearing organization is an entity that enables each party to agreements, contracts, and transactions throught novation. This also includes arrangements for the settlement or netting of obligations.
Incorrect
The derivatives clearing organization may register as a swap data repository. A derivatives clearing organization is an entity that enables each party to agreements, contracts, and transactions throught novation. This also includes arrangements for the settlement or netting of obligations.
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Question 6 of 10
6. Question
Which of the following requirements are needed to be completed by a Floor Broker (FB)?
I. Complete online Form 7-R
II. Submit fingerprint cards
III. Contract markets and SEFs must submit proof that they have been granted trading privileges. Contract markets and SEFs may provide proof in ORS after their application has been filed.
IV. Pay a non-refundable application fee of $90Correct
To register as a Floor Broker (FB) there are requirements that must be completed by an individual. This also includes that in order to obtain secure access to NFA ORS, an individual must designate himself/herself as the Security Manager. Next, online Form 8-R must be completed and a non-refundable application fee of $85 must be paid.
Incorrect
To register as a Floor Broker (FB) there are requirements that must be completed by an individual. This also includes that in order to obtain secure access to NFA ORS, an individual must designate himself/herself as the Security Manager. Next, online Form 8-R must be completed and a non-refundable application fee of $85 must be paid.
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Question 7 of 10
7. Question
Which of the following is correct regarding the “swap data repository”?
Correct
As defined by the Commodity Exchange Act, a “swap data repository” is a person who maintans and collect records and transactions entered into by third parties for the purpose of providing a centralized recordkeeping facility. This applies to transactions related with swaps.
Incorrect
As defined by the Commodity Exchange Act, a “swap data repository” is a person who maintans and collect records and transactions entered into by third parties for the purpose of providing a centralized recordkeeping facility. This applies to transactions related with swaps.
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Question 8 of 10
8. Question
Who among the following are exempted in the registration of an Associated Person?
I. The individual is already registered with the FINRA as a registered representative and limits futures activity to the solicitation of participants in a commodity pool
II. Misusing sensitive personal information
III. Attempting to obtain information disclosing a CTA’s historical trading positions without CTA’s permission
IV. The individual is already registered as an FCM, IB or, FBCorrect
The individuals mentioned above are exempted in the Associated Person (AP) Registration. Individuals may be also exempted if he or she is already registered as a CPO or as a CTA and if he or she is associated with a CPO or CTA.
Incorrect
The individuals mentioned above are exempted in the Associated Person (AP) Registration. Individuals may be also exempted if he or she is already registered as a CPO or as a CTA and if he or she is associated with a CPO or CTA.
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Question 9 of 10
9. Question
Which of the following is incorrect in relation to “derivatives clearing organization”?
Correct
A “derivatives clearing organization” shall mutualize and transfer credit risk arising from such agreements. It enable each party to the agreement, through novation, the credit of the derivatives clearing organization for the credit of the parties. It also arranges the netting of obligations in a multilateral basis.
Incorrect
A “derivatives clearing organization” shall mutualize and transfer credit risk arising from such agreements. It enable each party to the agreement, through novation, the credit of the derivatives clearing organization for the credit of the parties. It also arranges the netting of obligations in a multilateral basis.
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Question 10 of 10
10. Question
Who will be held responsible for the floor broker’s violation if an award of punitive or exemplary damages is made against a floor broker?
Correct
The futures commission merchant who selected the floor broker for the execution of the customer shall be held responsible if the floor broker made exemplary damages or punitive damages in the execution of the order. This violation must be willful and intentional for the futures commission merchant to be held liable.
Incorrect
The futures commission merchant who selected the floor broker for the execution of the customer shall be held responsible if the floor broker made exemplary damages or punitive damages in the execution of the order. This violation must be willful and intentional for the futures commission merchant to be held liable.