data = [ { "moduleName": "Exchange for physical (EFP) Quiz", "questions": [ { "question": "EFPs must contain a physical component where the physical commodity or instrument is:", "feedback": "Under ASX 24 Operating Rules, EFPs must contain a physical component where the commodity or instrument is of a similar value or quantity to the futures or options being traded and be reasonably correlated with the futures or options contract.", "correctAnswer": "2", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. Of lesser value than the futures or options contract being traded" }, { "optionId": 2, "optionText": "B. Of similar value to the futures or options contract being traded" }, { "optionId": 3, "optionText": "C. Of greater value than the futures or options contract being traded" }, { "optionId":4, "optionText":"D. Unrelated to the futures or options contract being traded" } ] }, { "question": "There must only be______________ involved with an EFP transaction. Please fill in the blank:", "feedback": "Under ASX 24 Operating Rule Procedure 4801(c), there must only be two parties involved with an EFP transaction – the buyer of the physical commodity or instrument must also be the seller of the futures contract and the seller of the physical commodity or instrument must be the buyer of the futures contract.", "correctAnswer": "2", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. One party" }, { "optionId": 2, "optionText": "B. Two parties" }, { "optionId": 3, "optionText": "C. One Trading Participant" }, { "optionId":4, "optionText":"D. Two Trading participants" } ] }, { "question": "Which of the following EFP transactions are permitted. A transaction where:", "feedback": "Under ASX 24 Operating Rule Procedure 4801(c), there must only be two parties to an EFP, however this does not prohibit a transaction where: both sides are taken by the same Trading Participant where the ultimate clients are different; both sides are by the same entity but acting in different capacities; either side of the EFP has the futures and physical component of the transaction booked to separate legal entities that are Related Body Corproates, for accounting or structure related purposes, however managed by the same trade or trading desk as approved by the Market Operator. ", "correctAnswer": "4", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. both sides are taken by the same Trading Participant where the ultimate clients are different" }, { "optionId": 2, "optionText": "B. both sides are by the same entity but acting in different capacities" }, { "optionId": 3, "optionText": "C. either side has the futures and physical component of the transaction booked to separate legal entities that are Related Body Corporates, however managed by the same trader / desk as approved by the AMO" }, { "optionId":4, "optionText":"D. all of the above" } ] }, { "question": "Which of the following EFP transactions are permitted. A transaction where:", "feedback": "Under ASX 24 Operation Rule Procedure 4801(c), there must only be two parties to an EFP, however this does not prohibit a transaction where: each side is for a different division of the same Trading Participant entity which trades separately and for different purposes; the settlement of the physical is facilitated by a third party, on a matched principal basis, on behalf of two other parties, and where the third party must be able to demonstrate that the related physical component of a matched principal EFP was settled separately with each party to the Futures Market Transaction of the EFP; both sides are by the same entity but acting in different capacities.", "correctAnswer": "4", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. each side is for a different division of the same Trading Participant entity which trades separately and for different purposes" }, { "optionId": 2, "optionText": "B. the settlement of the physical is facilitated by a third party, on a matched principal basis, on behalf of two other parties, and where the third party must be able to demonstrate that the related physical component of a matched principal EFP was settled separately with each party to the Futures Market Transaction of the EFP." }, { "optionId": 3, "optionText": "C. both sides are by the same entity but acting in different capacities." }, { "optionId":4, "optionText":"D. all of the above" } ] }, { "question": "A trader with a Broker who is an ASX 24 Trading Participant and is approached by a client who wants to trade ASX Interest Rate Futures contract. Which of the following physical components and to which value may be exchanged: ", "feedback": "Under ASX 24 Operating Rule Procedure 4801(a) and with further detail provided in ASX 24 Operating Rule Procedure 4801(d), AUD Negotiated Certificates of Deposit may be exchanged for an Interest Rate Futures contract provided it is within 10% value of the Futures Market Contract.", "correctAnswer": "3", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. Physical grain or financial instrument pertaining to grain within 10% value of the Futures Market Contract" }, { "optionId": 2, "optionText": "B. AUD Negotiable Certificates of Deposit within 20% of the Futures Market Contract" }, { "optionId": 3, "optionText": "C. AUD Negotiable Certificates of Deposit within 10% of the Futures Market Contract" }, { "optionId":4, "optionText":"D. Basket of ASX traded stocks in one or more companies where the cash value of the basket of stocks and the notional value of the SPI Futures fall within 10% of each other." } ] }, { "question": "Which of the following types of futures contracts CANNOT be traded as part of an EFP transaction on the ASX 24 market:", "feedback": "Cattle futures and options contracts are not prescribed contracts under ASX 24 Operating Rule Procedure 4801(a)", "correctAnswer": "4", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. Interest Rate futures and options contracts" }, { "optionId": 2, "optionText": "B. Grain futures and options contracts" }, { "optionId": 3, "optionText": "C. Energy futures and options contracts" }, { "optionId":4, "optionText":"D. Cattle futures and options contracts" } ] }, { "question": "Which of the following physical commodities may be exchanged for ASX interest rate futures and options contracts:", "feedback": "All of the above are accepted physical commodities under ASX 24 Operating Rule Procedure 4801(a).", "correctAnswer": "4", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. Commonwealth Government securities" }, { "optionId": 2, "optionText": "B. Interest Rate Swaps" }, { "optionId": 3, "optionText": "C. Bank accepted Bills of Exchange" }, { "optionId":4, "optionText":"D. All of the above" } ] }, { "question": "Belinda is a trader with a Broker who is an ASX 24 Trading Participant.
She is approached by a client who wants to negotiate an EFP transaction that involves two different types of interest rate futures contracts in exchange for an Over-the-Counter physical component.
Is this transaction permissible under ASX 24 Procedure 4801(a)(iv)?", "feedback": "Under ASX 24 Operating Rule Procedure 4801(a)(iv), an EFP transaction may involve more than one type of futures contract or physical component.", "correctAnswer": "3", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. No, an EFP may contain only one type of futures contract in exchange for a single physical component." }, { "optionId": 2, "optionText": "B. No, an EFP may involve more than one type of physical component, but only one type of futures contract." }, { "optionId": 3, "optionText": "C. Yes, an EFP transaction may involve more than one type of futures contract or physical component." }, { "optionId":4, "optionText": "D. Yes, however, Belinda must request approval from the Exchange." } ] }, { "question": "If an EFP is agreed between 7:00am and 4:30pm, the EFP must be reported to the Market Operator:", "feedback": "Under ASX 24 Operating Rule Procedure 4802(b), the EFP must be reported to the Market Operator within 60 minutes for the seller and within 60 minutes for the buyer.", "correctAnswer": "4", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. Within 30 minutes for the seller and within 30 minutes for the buyer" }, { "optionId": 2, "optionText": "B. Within 30 minutes for the seller and within 60 minutes for the buyer" }, { "optionId": 3, "optionText": "C. Within 60 minutes for the seller and within 30 minutes for the buyer" }, { "optionId":4, "optionText":"D. Within 60 minutes for the seller and within 60 minutes for the buyer" } ] }, { "question": "Amanda is a trader at a Broker who is, an ASX 24 Trading Participant. In accordance with ASX 24 Procedure 4802(b), she reported an EFP transaction to the Market Operator at 11:00am. At 2:00pm on the same day, Amanda realises that she reported incorrect details when registering the EFP transaction.
The correct way to rectify this error is to:", "feedback": "Under ASX 24 Operating Rule Procedure 4802(e), an EFP transaction may be submitted for cancellation at any time up to the end of the Business Day on which reporting and acceptance of the transaction took place.", "correctAnswer": "2", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. Send a message to the Market Operator and the Market via the Message Facility communicating the amendment" }, { "optionId": 2, "optionText": "B. Cancel the original EFP transaction using the ASX TradeAccept platform and submit a new EFP transaction with the correct details as it is still the Day of Reporting" }, { "optionId": 3, "optionText": "C. Wait until Day 2 and then re-submit the correct EFP transaction before 9:00am" }, { "optionId":4, "optionText":"D. There is no provision under ASX 24 Procedure 4800 for the cancellation of EFP transactions" } ] }, { "question": "Jonathan is a trader with a Broker who is, an ASX 24 Trading Participant, and has successfully negotiated an EFP transaction between two of his clients. On the following day, Jonathan realises that he reported incorrect details when registering the EFP transaction.
The correct way to rectify this error is to:", "feedback": "Under ASX 24 Operating Rule Procedure 4802(f), where there has been an error in the details of an EFP transaction submitted for reporting, a Trading Participant may submit that transaction for cancellation at any time up to the end of the Business Day after the reporting and acceptance of that transaction, provided it submits at the same time a replacement EFP transaction with the correct details for reporting.", "correctAnswer": "2", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. Cancel the EFP transaction as it is still the Day of Reporting" }, { "optionId": 2, "optionText": "B. Cancel the original EFP transaction and submit a replacement EFP transaction with the correct details via the ASX TradeAccept Platform" }, { "optionId": 3, "optionText": "C. Wait until the following day and then re-submit the correct EFP transaction before 9:00am" }, { "optionId":4, "optionText":"D. There is no provision under ASX 24 Procedures for the replacement of EFP transactions" } ] }, { "question": "The Market Operator will publish information to Trading Participants in respect of all EFP transactions. Which of the following will NOT be published by the Exchange, with respect to EFP transactions:", "feedback": "Under ASX 24 Operating Rule Procedure 4802(g), the Market Operator publishes to Trading Participants upon receipt of each EFP transaction only the commodity, quantity, time and price of the Exchange for Physical transaction.", "correctAnswer": "4", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. Name of the client" }, { "optionId": 2, "optionText": "B. Name of the Trading Participant/s" }, { "optionId": 3, "optionText": "C. Name of the Clearing Participant/s" }, { "optionId":4, "optionText":"D. All of the above." } ] }, { "question": "EFPs presented for reporting after ________ will be processed on the next business day. Please fill in the blank:", "feedback": "Under ASX 24 Operating Rule Procedure 4802(b), EFPs presented for reporting after 5:30pm will be processed on the next business day.", "correctAnswer": "4", "questionType": "single", "answers": [ { "optionId": 1, "optionText": "A. 3:00pm" }, { "optionId": 2, "optionText": "B. 4:00pm" }, { "optionId": 3, "optionText": "C. 4:30pm" }, { "optionId":4, "optionText":"D. 5:30pm" } ] } ] } ]