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a) A Participating Organisation can execute Regulated Short Selling if the Client is associated with the body corporate that issued the securities.

b) A Participating Organisation can execute a Regulated Short Sale by way of Direct Business Transaction.

c) A Participating Organisation must execute all orders on the same Market Day that the Client instructs for the order to be executed.

d) A Participating Organisation does not need to open a separate trading account if it is executing Regulated Short Selling for itself.

a) 5%

b) 10%

c) 15%

d) 20%

a) Statement of financial resources

b) Statement of total risk requirement

c) Statement of appointed auditors

d) Aggregate indebtedness

a) Unsystematic risk

b) Systemic risk

c) Liquidity risk

d) Operational risk

a) Compliance staff of a Participating Organisation may perform roles such as that of an in-house legal counsel.

b) A Participating Organisation should have an independent compliance function with staff who are suitably qualified and independent from the front office.

c) A Participating Organisation should designate a senior staff from the front office to be responsible for compliance.

d) A Participating Organisation may engage an external service provider to support its compliance arrangements.

a) Futures can be used to hedge against adverse future price movements in the underlying commodity.

b) Cash prices and futures values move closely in tandem.

c) A businessperson can always rely on futures to offset the full amount of losses in the actual commodity he/she holds.

d) A speculator can make more money in the futures market with less capital compared to the actual cost of owning the underlying commodity.

a) It allows businesses to hedge against the risk of increases in costs of raw materials.

b) It does not increase a financial institution’s lending capabilities.

c) It allows financial institutions to hedge against credit risk.

d) Some derivative instruments are traded over an exchange.

a) Tick size

b) Margin call procedures

c) Mark-to-market procedures

d) Termination procedures

a) A Trading Participant may request from its Clients for margins above the minimum required by the Clearing House.

b) Each Client’s Open Positions must be marked to market daily and additional call for margins must be made if necessary.

c) Where margins are required, the Trading Participant must obtain a minimum initial margin and maintain the amount of minimum margins on all Open Positions.

d) A Trading Participant may Close Out any Open Position of a Client where the Client fails to comply with a demand for margin within 1 hour from the time of demand.

a) RM10,837,800

b) RM10,865,900

c) RM10,953,500

d) RM10,985,400

a) A person involved in insider trading is guilty if the information divulged was not generally available.

b) A person involved in insider trading is not guilty if the information divulged was generally available and might have a material effect on the price of the security.

c) Insider trading information is information that is not generally available and if known would influence a person to buy or sell certain securities.

d) Insider trading information is information that may influence a person to buy or sell certain securities.

a) warrants issue

b) rights issue

c) convertible shares issue

d) book-building