What Ought to Be Done in the Event a Trade

question 536

Multiple Choice

What ought to be done in the event a trade erroneously occurs at an off-market rate?

• A) By agreement between the two counterparties, the trade must be cancelled as soon as practically possible since a rate amendment is prohibited.
• B) By agreement between the two counterparts, the trade should, as soon as practically possible, either be cancelled or have its rate amended to an appropriate market rate.
• C) The off-market rate should be adjusted as soon as possible to the appropriate current market rate and a new authenticated SWIFT confirmation sent immediately to the counterparty.
• D) Nothing need be done, since once a trade is agreed to by the front office it is a binding agreement for both counterparties.

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Definitions:

Guilt

A feeling of responsibility or remorse for some offense, crime, wrong, whether real or imagined.

Workplace Violence

Any act of physical violence, threats, harassment, or intimidation that occurs within a work setting.

Hostile Remarks

Negative or aggressive comments directed toward individuals, often implying opposition or antagonism.

Physical Assaults

Acts of violence or force against another person that result in physical harm or are intended to cause physical harm.