3I0-012 Questions Bank

The level of interest rates in the base currency

The level of interest rates in the quoted currency

The interest rates in the two currencies

Your expectations of the future spot rate

0.008520

0.009510

0.009515

0.009518

they have good track records in dealing both for their institution and for themselves

there have been no previous conflicts of interest in the dealing room

there is a clearly defined and written policy about the matter

the dealers see no conflict of interest in such dealing

Dealers may seek a compensation payment in favor of the bank or an adjustment to brokerage bills from the broker for switching names.

If requested by a broker to clear a transaction through name switching, a dealer must ensure that such activities have the prior approval of senior management.

The practice of name switching/substitution is neither acceptable nor desirable.

Name switching/substitution transactions should be executed as promptly as possible not considering credit limits and policy guidelines.