Trading Markets 3/15

The amount of __________ is calculated after a bond trade is executed - it is not on the order ticket that is used to enter the order

accrued interest

The orders that are higher in price than the current market are ____________.

Open Sell Limits
Open Buy Stops

Rule 612 of Regulation NMS does not allow _________ quotes or orders to be entered for NMS stocks.

sub-penny

___________ orders CANNOT be placed in the NASDAQ System (Single Book) or NYSE Super Display Book.

Not held orders

Custodian account securities cannot be assigned by the _______.

minor

If a firm effects trades solely on an principal basis, the firm is or is not a market maker?

Is a market maker

If a firm effects trades solely on an principal basis, the firm ________ inventory.

carries

The Specialist/DMM can sell _______ than this inder market price for his own account.

LOWER

_________ trades are reported through ACT's Trade Reporting Facilities (TRFs)

NYSE listed issues and NASDAQ listed issues

Limit orders to buy are placed lower than the current market and will be place on the __________.

Specialist/DMM book

The refusal by a municipal dealer to accept a delivery of bonds tendered to that firm by another municipal securities dealer is called ________.

Right of Rejection

ECNs do not trade _______, because the market is illiquid.

OTC issues

Direct participation programs (limited partnerships) also do not ____.

trade

Retail member firms that route orders to market makers in return for compensation earn _________.

payments for order flow

Selling a security and using the proceeds to purchase a different security is a ________ transaction.

proceeds transaction

Buying a security into inventory direct from a customer with a mark-down is a ____________ transaction.

principal transaction

Buying and simultaneously selling short the same security in different markets to lock in a price differential is a ________ transaction.

arbitrage.

After receiving a buy order, the dealer purchases the stock into inventory and resells it to a customer is a _________ transaction.

Riskless

Who can trade securities for his own account?

Specialist/DMM and Market Maker

Quotes for NYSE listed issues, regardless of the market venue where the quote originates, are found on ________.

CQS - Consolidated Quotations Service

Quotes for NASDAQ listed issues, regardless of the market venue where the quote originates, are found on the ______.

UQDF - UTP Quote Data Feed

The New York Stock Exchange automated trading system is called __________.

Super Display Book