The Popularity of FX-Trading Via Internet Platforms Has Serious Implications

question 102

Multiple Choice

The popularity of FX-trading via Internet platforms has serious implications for the applicability of traditional rules such as "Know Your Customer". Which of the following are correct?

• A) "Know Your Customer" rules cannot be applied online and banks will have to rely instead on new safeguards such as third-party authentication.
• B) "Know Your Customer" rules apply only to retail customers and are therefore irrelevant to currency trading.
• C) In practice, banks can avoid "Know Your Customer" rules by limiting online deal size to EUR 100,000.00 or equivalent.
• D) No trading should be carried out without first identifying and setting up the counterparty; this includes "Know Your Customer" procedures.

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Definitions:

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem down the vertebral column, facilitating neural connections between the brain and the body.

Vertebrae

The individual bones that make up the vertebral column, or spine, providing structural support and protection for the spinal cord.

Xiphoid Process

The xiphoid process is the small, cartilaginous projection at the lower end of the sternum, which becomes bony and ossified with age.

Manubrium

The upper portion of the sternum to which the clavicle and first ribs attach.