data = [ { "moduleName": "Block Trades", "questions": [ { "question": "Jonathan is a trader with the futures broker –Broker A. He is negotiating a Block Trade on behalf of David from Electricity Corporation, who wants to sell 25 lots of the March 2025 NSW Base Load Electricity (BNH5) futures contracts.
Jonathan has sourced interest from the market and has received an order to buy 10 lots of the BNH9 futures contracts from Anna at Company A, as well another buy order for 15 lots of the BNH9 futures contracts from Paul at Company B.
Which of the following Block Trades is allowable under the current ASX 24 rule framework:", "feedback": "A minimum volume threshold applies to each leg of a Block Trade. For Australian electricity futures contracts the minimum volume threshold is 25 lots. Participants may not aggregate separate orders to meet the minimum threshold requirements.", "correctAnswer": "4", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. Between David and Anna for 10 lots of BNH5" }, { "optionId": 2, "optionText": "B. Between David and Paul for 15 lots of BNH5" }, { "optionId": 3, "optionText": "C. Among David, Anna and Paul for 25 lots of BNH5" }, { "optionId":4, "optionText":"D. Jonathan cannot execute a Block Trade in the BNH5 because the buy orders do not meet the minimum volume thresholds" } ] }, { "question": "What is the minimum volume threshold when negotiating Block Trades in New Zealand electricity futures contracts:", "feedback": "Australian electricity futures contracts have a minimum threshold of 25 lots, but for New Zealand contracts, the minimum threshold is 50 lots.", "correctAnswer": "4", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. 1 lot" }, { "optionId": 2, "optionText": "B. 5 lots" }, { "optionId": 3, "optionText": "C. 25 lots" }, { "optionId":4, "optionText":"D. 50 lots" } ] }, { "question": "What are the Applicable Agreement Hours for negotiating Block Trades in electricity futures contracts:", "feedback": "Australian electricity futures and options contracts, strip options and cap futures contracts as well as New Zealand electricity futures and options contracts may be agreed at any time, except during the pre-open period.", "correctAnswer": "4", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. at any time. " }, { "optionId": 2, "optionText": "B. during the day trading session. " }, { "optionId": 3, "optionText": "C. during the night trading session." }, { "optionId":4, "optionText":"D. at any time, except during the pre-open period." } ] }, { "question": "Can the Block Trade Facility be used to execute Roll business?", "feedback": "It is prohibited to use the Block Trade Facility to execute Roll business (recall that roll business is when a Trading Participant trades a position from the nearest delivery month to an equivalent position in a different delivery month).", "correctAnswer": "3", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. Yes, except for 5 trading days prior to expiry of the spot month" }, { "optionId": 2, "optionText": "B. Yes, at anytime" }, { "optionId": 3, "optionText": "C. No, it is prohibited to use the Block Trade Facility to execute Roll business" }, { "optionId":4, "optionText":"D. No, except for 5 trading days prior to expiry of the spot month" } ] }, { "question": "Pam is a trader with Broker A, an ASX 24 Trading Participant, who has received a Block Trade order from one of her clients.
Under the ASX 24 Operating Rules and Procedures, which of the following is Pam NOT permitted to do whilst negotiating the Block Trade order:", "feedback": "ASX 24 Trading Participants cannot aggregate separate orders from different counterparties in order to meet the minimum volume thresholds. All of the other actions are permissible in this scenario.", "correctAnswer": "2", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. Solicit counterparties to the Block Trade amongst other Trading Participants" }, { "optionId": 2, "optionText": "B. Aggregate separate orders from different counterparties in order to meet the minimum volume threshold" }, { "optionId": 3, "optionText": "C. Disclose details of the Block Trade order to other Trading Participants (as authorised by the client)" }, { "optionId":4, "optionText":"D. Withhold transmission of the Block Trade order in order to find a suitable counterparty" } ] }, { "question": "Craig is a trader with the futures broker – Broker A, an ASX 24 Trading Participant. He has successfully negotiated and agreed a Block Trade during the trading session and is now required to report with the Market Operator.
According to the ASX 24 Operating Rules and Procedures (Procedure 4820.3 – Trade Reporting), what is the time limit for submitting the trade reporting to the Market Operator after all details of the Block Trade have been agreed:", "feedback": "Where a Trading Participant has arranged a Block Trade between two or more clients, the Trading Participant must report with the Exchange the details of the Block Trade within ten minutes of the trade being agreed.", "correctAnswer": "2", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. 5 minutes" }, { "optionId": 2, "optionText": "B. 10 minutes" }, { "optionId": 3, "optionText": "C. 60 minutes" }, { "optionId":4, "optionText":"D. Prior to the market close for the trading session that the trade was negotiated in" } ] }, { "question": "Broker A and Broker D are ASX 24 Trading Participants that have negotiated a Block Trade on behalf of their clients.
When is the Block Trade deemed to have been executed?", "feedback": "A Block Trade is deemed not to have been executed until it has been accepted by the Market Operator.", "correctAnswer": "3", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. When the clients have agreed the trade" }, { "optionId": 2, "optionText": "B. When the Trading Participants have agreed the trade" }, { "optionId": 3, "optionText": "C. When the trade has been accepted by the Market Operator" }, { "optionId":4, "optionText":"D. When the Trading Participants have agreed and reported the trade" } ] }, { "question": "James negotiated a block trade for 30 lots of the March 2025 NSW Base Load Quarterly $300 Cap Electricity (GNH5) futures contracts between a Bank and a Power Corporation.
The GNH5 futures contract was trading at around $40 on the ASX 24 market, however, both parties to the Block Trade agreed to a price of $65 for the Block Trade. James reported the block trade with the Market Operator.
James was surprised to find that the block trade was queried by the Market Operator due to possible non-compliance with the ASX 24 Operating Rules and Procedures.
On what basis did the Market Operator query the block trade negotiated by James?", "feedback": "The market for GNH5 futures contracts is trading at $40, however, the Block Trade was transacted at $65. This difference in price between the on-market trading and the Block Trade may cause the Exchange to query the Trading Participant.", "correctAnswer": "4", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. The block trade did not meet the minimum volume requirements for the GNH9 futures contract." }, { "optionId": 2, "optionText": "B. This contract is not able to executed as a block trade" }, { "optionId": 3, "optionText": "C. As the order had been aggregated it is not able to executed as a block trade" }, { "optionId":4, "optionText":"D. The trade price varied significantly from the price at which trades were being transacted on-market." } ] }, { "question": "David is a trader at Broker B, an ASX 24 Trading Participant.
In accordance with ASX 24 Procedure 4820, David agreed and reported the following Block Trade just after the market opened this morning: “BT: BVZ5 50 @ 50.00”
At 3:30pm prior to the close of the ASX 24 market, David was performing a trade check when he realised that he had entered the incorrect expiry and that the Block Trade should have been: “BT: BVU5 50 @ 50.00”
The correct way to rectify this error is to:", "feedback": "A Block Trade may be cancelled by agreement between all parties at any time up to the end of the business day on which the reporting of the trade took place via the ASX TradeAccept platform.", "correctAnswer": "1", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. Cancel the original Block Trade and re-submit the correct Block Trade as it is still the Day of Reporting." }, { "optionId": 2, "optionText": "B. Cancel the original Block Trade today and re-submit the correct Block Trade on the following business day between 8:30am and 8:50am." }, { "optionId": 3, "optionText": "C. Wait until Day 2 whereby the Block Trade can be cancelled as long as it is replaced with the correct Block Trade." }, { "optionId":4, "optionText":"D. Send a message to the Exchange and Market via the Message Facility communicating the amendment." } ] }, { "question": "Which of the following procedures should be followed when requesting a Block Trade cancellation:", "feedback": "Lodge a cancellation request electronically via the ASX TradeAccept Platform.", "correctAnswer": "1", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. Cancellations are lodged and submitted electronically via the ASX TradeAccept Platform" }, { "optionId": 2, "optionText": "B. Notify the Market Operator by telephone within 10 minutes of the trade occurring." }, { "optionId": 3, "optionText": "C. Notify the Market Operator by telephone within 10 minutes of the trade occurring, followed by an email to the Market Operator within 5 minutes of the telephone request." }, { "optionId":4, "optionText":"D. Send a message to the Market Operator and Market via the Message Facility communicating the cancellation." } ] } ] } ]