Series 57 general trading practices questions

A: The exception allows an appropriately registered and supervised clerk in an approved booth premise to process orders sent to the booth in the same manner that sales traders in an upstairs office may process them. B: Orders represented orally at the point of sale are represented by a Floor broker, while the clerk's permission covers orders sent to the booth. C: A member's presence does not widen the exception, and consummating transactions on the Floor is limited to members. D: Making or accepting bids and offers on the Floor stays limited to members, and the booth exception does not reach it.

A: Long positions run at 25 percent and short positions at 30 percent, with 5 percent taking the place of 25 percent for exempted securities. B: 5 percent reaches long positions in exempted securities, which this account does not hold. C: The two percentages are the right ones in the wrong places. Long positions take the lower of them. D: A single figure for both sides flattens a test that runs on two.

A: A primary peg is pegged to the quotation on its own side with no offset allowed. The offset value, specified up to two decimals, belongs to the market peg. B: The display quantity takes the display rank and the reserve interest takes the non-display rank, so it holds. C: Arrival into a locked or crossed protected quotation is the branch that rejects this type outright, so it holds. D: The rule sets the working price of this type equal to its display price, so it holds.

A: Staff warn that clearing agreements already in place likely do not describe the allocation arrangement with the specificity the exception needs. B: No contract can allocate a financial control, because those must always remain under the direct and exclusive control of the firm providing market access. C: The customer's registration makes it eligible to receive an allocation. It does not remove the written contract condition. D: Written form alone is not the test. The contract must specify the controls being allocated and articulate each party's responsibilities.

A: The window covers orders and quotes alike; what survives the close is a cancellation right, not a right to enter new orders. B: A separate clock runs past the close, and a resting good til canceled or good til date order may still be canceled until 5:15 p.m. Eastern Time. C: The technical specifications identify the minimum information an order must contain and do not move the hours of the window. D: The window governs entry until the session's market close, while cancelling a resting good til canceled or good til date order runs until 5:15 p.m. Eastern Time, a second and later clock.

A: No fixed clock runs here. The standard is prompt action, and withdrawal is the alternative to routing. B: The repair is a choice of two, and the sweep order route has to reach the full displayed size of the locked or crossed quotation. C: The choice between the two routes does not turn on the character of the crossed quotation; the member may withdraw the manual quotation or route a sweep order against its full displayed size. D: Repricing is not one of the two routes offered, which are prompt withdrawal and a sweep order against the full displayed size.

A: No reporting duty to an exchange attaches here, and the duty about the member's own financial interests is left out. B: Three duties attach together whenever the trading activity could affect the market for the security that is the subject of the customer block order. C: The duty speaks to the member's financial interests rather than to the sequence in which orders are entered, and the duty to minimize disadvantage or harm is missing. D: A third duty stands beside these two: the member must not place its own financial interests ahead of those of its customer.

A: The firm quote duty calls for an execution of at least a normal unit of trading at the trading center's displayed quotations as disseminated through the facility at the time the offer is received. B: The price the duty names is the trading center's own displayed quotation as disseminated through the facility when the offer arrived. C: That size gap triggers a revised quotation after a partial fill and is not a condition of the duty to execute at the displayed quotation. D: The duty is to execute against the displayed quotation rather than to send the offer to another venue.