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3I0-012 · Question #509

What does the Model Code recommend with regard to any give-up agreement between a prime broker and an executing dealer?

The correct answer is A. That the Master FX Give-Up Agreement (FMLG - New York FED FXC) published by the Foreign. See the full explanation below for the reasoning.

Question

What does the Model Code recommend with regard to any give-up agreement between a prime broker and an executing dealer?

Options

  • AThat the Master FX Give-Up Agreement (FMLG - New York FED FXC) published by the Foreign
  • BThat this agreement need not specify the permitted transaction types, tenors or credit limits.
  • CThat this agreement must include instructions that the prime broker must advise the executing dealer
  • DThat this agreement should not involve any requirement for the executing dealer to inform the prime

How the community answered

(64 responses)
  • A
    80% (51)
  • B
    11% (7)
  • C
    6% (4)
  • D
    3% (2)

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