ICMA SOFQ Exam Questions Instant Access - No Installation Required

Question 1

Within internal books and records, the recording of the trading book on a securities trade facilitates:

AReconciliation of settled positions, per trading book and per security - between the trading department and operations

BReconciliation of settled positions, per trading book and per security - between operations and the firm's custodian

CReconciliation of trading positions, per trading book and per security - between the firm's counterparty and the firm's custodian

DReconciliation of trading positions, per trading book and per security - between the trading department and operations

Answer : D

Question 2

A cash amount of GBP 5,909,658.47 lent on a Thursday until the second Monday (just over 1 week later) at a rate of 2.973%, would attract:

A7 days of interest and a cash interest amount of GBP 3369.48

B9 days of interest and a cash interest amount of GBP 4392.35

C13 days of interest and a cash interest amount of GBP 6344.51

D11 days of interest and a cash interest amount of GBP 5294.89

Answer : D

Question 3

Bond types that are traded at a deeply discounted price are:

AFloating rate notes

BZero coupon bonds

CConvertible bonds and Exchangeable bonds

DFixed rate bonds

Answer : B

Question 4

Where the term 'Ordinary Shares' is used in the UK, the equivalent term in the US is:

ACommon stock

BCorporate Shares

CNormal Shares

DOrdinary Stock

Answer : A

Question 5

Grey market trading refers to:

ATrading of equity and bonds by investors aged 65 and over at the start of the tax year

BTrading in convertible and exchangeable bonds prior to their conversion

CTrading in corporate bonds following the bondholder's decision to take-up a put option

DTrading in a new issue of bonds by parties not involved in the syndication process

Answer : D

Question 6

Internal trading systems typically do not:

AReflect the firm's settled positions at CSDs/custodians

BHave the capability to capture new trades

CHold the firm's current trading positions

DHave the capability to amend and cancel trades

Answer : A

Question 7

FTM Levy is charged:

AOn US equity trades -where the gross consideration is in excess of USD 10,000.00

BOn UK equity trades where the gross consideration is GBP 10,000.00 and above

COn US equity trades where the gross consideration is USD 10,000.00 and below

DOn UK equity trades where the gross consideration is in excess of GBP 10,000.00

Answer : D

ICMA Securities Operations Foundation Qualification (SOFQ) SOFQ Exam Questions