Knowledge Base

← Market Functioning and Organization

Questions

Which criterion clearly distinguishes the SRD from a true futures market?

Physical delivery of the underlying
No dividends for long positions
Immediate settlement of transactions
Exclusive use of equities as the underlying

What is the standard settlement-delivery period for equities on the Euronext Paris spot market?

T+1
T+2
T+3
T+5

What is the minimum cash coverage required for an SRD-eligible transaction on Euronext Paris?

10%
20%
30%
50%

True or False: SRD transactions are settled between the investor and their intermediary on the fourth trading day before the end of the calendar month.

True
False

True or False: On a futures market, the underlying asset is always physically delivered at contract expiry.

True
False

Categorize items by dragging them to the appropriate zones

Items to categorize:

Rapid settlement (T+2)
Margin system
Full funds required
Deferred settlement
Categories:

Spot market

Futures market

On a futures market, which mechanism allows positions to be taken whose value significantly exceeds the funds committed?

Full cash payment
The margin system
Deferred settlement (SRD)
Immediate physical delivery

Deferred Settlement Service (SRD)

Click to see answer