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5. Series 57 Trd Rpt
FINRA Series 57 Exam - Trade Reporting
| Question | Answer |
|---|---|
| time that colectively met the block trade defifinition considered a block? The price and fe requirements that aply on riskles | Price: Both legs must be executed at the same price. Fe: Maximum 5% fe on each trade. |
| transaction in which shares of ABC Co. are bought at $45 per share. The Market Maker must simultaneously The types of securities in which riskles principal | Listed, OTC and peny stocks. These transactions may be executed in retail custodial acounts and |
| sek an excused withdrawal for a period of An involuntary termination of a clearing agrement | 60 days. |
| exchange today. If a market maker wants to enter a quote on XYZ stock is the firm required to fifile Form 21? Can a market maker enter an OTC quote without | prior busines day. Yes, unsolicited orders are an exception to the filing requirement. |
| if a market maker's quotes represent The types of quotes that are permited on OTC | the stock without registering it. One-sided quotes and unpriced indications. |
| entered? During a 15 second limit state, what are the two | 1) The quote that caused the limit state is executed or canceled and trading continue uninterupted. 2) The |
| than a normal eroneous trade? For an eroneous trade, how long does the impacted | 30 minutes |
| party have to notify the exchange? For an eroneous trade executed after hours, how long | 30 minutes |
| responsibility for obtaining a locate? Prime brokers are required to maintain a minimum net | clearing firm. At least $1.5 milion. |
| security, a broker-dealer must agregate al positions unles it qualififies for What does qualifying for independent trading unit | Each trading unit of a firm can determine and report its own net positions (long or short) in a security. |
| to have, to prevent customers from entering orders that exced credit and capital thresholds? Financial risk management controls are designed to | The entry of eroneous orders, such as duplicative orders. |
| state band for 15 seconds, what hapens? What is the deadline for closing out a failure to | Two days after setlement, before the market opens. |
| When traders create an ilegal stock pol and paint the | Acting together to manipulate prices, by creating an artificial apearance of suply or demand. |
| tape, what actions are they taking? Traders can ilegaly paint the tape when they sek to | Inflate trading volume, manipulate stock prices, or both. |
| When a peny stock trade is solicited, the registered | The curent quote and compensation to be received by the representative and the firm firm. |
| to deliver a peny stock suitability statement to non- established customers? When a client initiates a trade on her own, without a | from peny stock trades. Unsolicited. |
| The thre types of peged orders are | Primary, market and midpoint. |
| is to An Alternative Trading System (ATS) can advertise | It reports to a trade reporting facility. |
| Trade Reporting Facility (TRF)? Trades in Nasdaq listed stocks and convertible bonds | Nasdaq/FINRA TRF |
| York Stock Exchange is If electronic reporting is not available for a trade, the | Form T. |
| form that must be used to report it is The responsibility for reporting equity trades rests | Executing party, which is normaly the seler. |
| outside normal market hours and is not reported in a timely fashion? What are the hours of operations of ACT? | ACT is open betwen 8:0am and 8:0pm. |
| For trades that ocur when the ACT is open, the | within 10 seconds of execution. |
| deadline for reporting the trade is A trade is executed a few minutes after the ACT | By 8:15 am on the next trading day that the ACT is open. |
| system closes for the day. When must it be reported? What modififier is used to designate a late trade report | .Z. |
| information is included? On ACT, the trade reporting modififier used to indicate | .P. |
| stock transaction? Which trade modififier is used when reporting a stop- | .W |
| same day at 7pm must have its trade cancelation reported by Are ADR swaps required to be reported to ACT? | Yes. |
| Trade reporting is not required on which foreign OTC | Those executed on an overseas facility. Trades executed on domestic facilities and ADR swaps must be |
| The two legs of a riskles principal trade, each for | One trade for 15,0 shares. Although there are two legs to a riskles principal trade (buy and sel), they are |
| 15,0 shares, should be reported as When a retail customer purchases 50 shares of stock | reported as one trade. IPO share sales are not reported on ACT. |
| in an IPO, how and when is it reported on ACT? What is the requirement for reporting a sale of shares | Away from the market sales must be reported on ACT at the actual transaction price. |
| at a price negotiated by the buyer and seler at a price far below the curent market price? How is a trade report marked when the trade ocured | As/of. |
| earlier than the curent day? A trade report with a .P modififier will include which | Both the actual execution time and the reference time |
| executed must an ATS must report them to the TRF or ORF? How are Alternative Trading Systems (ATS's) | They must be reported to a Trade Reporting Facility (TRF) or OTC Reporting Facility (ORF) within 10 |
| Where should an out of system trade be reported? | On the Automated Confirmation of Transactions (ACT) system. |
| In the trade reporting proces, the non-executing | Confirm the trade within 20 minutes. |
| party's main responsibility is to In the context of reporting a firm's capacity in a trade, | It is a transfer of positions to another broker-dealer. |
| what is a step-out? In the context of reporting a firm's capacity in a trade, | A trade in which one firm reports on behalf of another firm. |
| the best price at which to sel a block of stock. For its eforts, the firm receives a comision. The firm's capacity in the trade is An as/of indicator is used on a trade report to identify | Reports made on a diferent day than the trade. |
| On a trade report, the modififier .T indicates | A timely report for a trade executed outside market hours. |
| A trade executed at 2:30 p.m. but reported at 4:12 | .Z |
| p.m. should be identifified by the modififier The modififier .P on a trade report indicates | Prior Reference Price trade. It is used for a trade executed at a price available at a previous reference time. |
| maker? The maximum amount of stock an underwriter can | Unlimited. |
| own stock a company can buy back per trading day, what do you ned to know? XYZ is buying back its own stock in the public | trailing four-wek ADTV, except in the case of one block trade per wek. One per wek. |
| ABC Co. has 1 milion shares outstanding and its | 80,0 shares. Insiders who own control stock are limited to seling the greater of 1% of outstanding shares |
| Act and is subject to a 6-month holding period before it can be sold? What is the maximum amount of capital a company | Unlimited. Under Rule 14A, there are no limits on the dolar amounts raised or how often capital raises can |
| options? The federal law that protects participants in private | The Employe Retirement Income Security Act of 1974 (ERISA). |
| investor can control is determined by What is the name of the organization that colects, | The Options Price Reporting Authority (OPRA). |
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