Knowledge Base

Questions

Which regulation restricted proprietary trading for deposit-taking banks in the United States?

The MiFID II rule

The Volcker Rule

The Basel III rule

The Dodd-Frank rule

Which investment service corresponds to the function of reception and transmission of orders on behalf of third parties under the French Code monétaire et financier?

Proprietary trading

Reception and transmission of orders on behalf of third parties

Execution of orders on behalf of third parties

Investment advice

Which criterion is NOT applicable to the best execution obligation for brokers under Article L.533-18 of the Code monétaire et financier?

Price

Cost

Customer service quality

Speed

What is the primary source of revenue for a dealer in financial markets?

Brokerage commissions

The bid/ask spread

Management fees

Government subsidies

Principal model (dealer)

Click to see answer

Categorize items by dragging them to the appropriate zones

Items to categorize:

Moderate prudential requirements

Substantial capital required to cover risks

Best execution obligation

Publication of firm quotes for liquid instruments

Categories:

Brokers

Dealers

Inter-dealer brokers primarily facilitate transactions between retail investors on OTC markets.

True

False

Brokers are bound by the best execution obligation under Article L.533-18 of the Code monétaire et financier.

True

False