Pass the ACI ACI-Financial 3I0-012 Questions and answers with CertsForce

matching should be performed by no later than the day after trading day

matching processes are manual and may not be automated

matching should be performed as soon as possible upon receipt of the confirmation

confirmation matching should be a post-settlement workflow activity

JPY 152,090

JPY 152,139

JPY 152,169

JPY 152,217

when the net spot position plus the forward position plus the delta equivalent of the foreign currency options book add up to zero

when the forward purchases of a foreign currency are equivalent to the equity position in that same currency

when the reverse repurchases of foreign currency are equal to the forward purchases of the functional currency

when the maturity structure of the assets in one currency is closely matched to the maturity structure of liabilities in another

interest rate, currency, equity and commodity risk

interest rate, currency, equity and default risk

interest rate, equity, liquidity and default risk

legal, reputation and regulatory risk

Credit Value Adaption

Call Value Adaption

Credit Value Adjustment

Counterpart Value Adjustment

the Canadian “Maple Leaf”

the South African “Krugerand”

the American “Gold Eagle”

the United Kingdom “Sovereign”

The market value of bond collateral at the start of the repo at the clean price of the bond

The market value of bond collateral at the start of the repo at the dirty price of the bond

The amount of cash actually paid for collateral at the start of the repo

The amount of cash actually paid for collateral at the start of the repo plus repo interest

Instruments qualifying for recognition as Tier 1 or Tier 2 capital will be substantially restricted.

Basel III does not include Tier 3 capital

There is a distinction between upper Tier 2 and lower Tier 2 capital

New non-common equity Tier 1 and Tier 2 instruments are more loss-absorbing than previously

The cost of hedging is given by the forward points, which are equal to the interest rate differential between the two currencies

The high interest rate currency will depreciate

The profit from the appreciation of the high interest rate currency has been hedged away

Interest rates are mean reverting, which means the low interest rate will tend to rise and the high interest rate will tend to fall

Sold USD 5,000,000.00 at 1.5575

Sold GBP 5,000,000.00 at 1.5575

Bought GBP 5,000,000.00 at 1.5580

Bought USD 5,000,000.00 at 1.5580

frequency trading

high-incidence trading

flash trading

liquidity aggregators

The “big figure” should not be included in outright quotations.

In order to avoid misunderstandings, the “big figure” should not be mentioned when repeating the details (facts/rates) of the deal.

For the sake of brevity and efficiency, “big figures” should never be quoted at all in spot FX trading.

The Model Code recommends that the “big figure” be included in all outright and spot FX quotations.

Time stamps on e-trading platforms need to be internally and globally synchronised to ensure appropriate tracking of trades

All records should be archived and appropriate audit trails must be maintained as required by the local Central Bank

Regular tests for loss of access to external liquidity platforms but not loss of service to clients should be undertaken

Testing of the system’s capability to cope with extreme volumes should be carried out annually

Borrowed CAD 20,000,000.00 at 1.06%

Lent CAD 20,000,000.00 at 1.11%

Borrowed CAD 20,000,000.00 at 1.11%

Lent CAD 20,000,000.00 at 1.06%

claims should be made for the costs incurred by the injured party and include all administration costs

no party involved can be enforced to contribute to achieve an equitable resolution to the problem

no market participant should be unjustly enriched or injured by the action/error of another market participant

claims are calculated on the full principal amount of the failed payment with the interest rate imposed by the injured party