The Model Code's Correct Recommendation Regarding Electronic Trading States

question 321

Multiple Choice

The Model Code's correct recommendation regarding electronic trading states:

• A) Time stamps on e-trading platforms need to be internally and globally synchronised to ensure appropriate tracking of trades
• B) All records should be archived and appropriate audit trails must be maintained as required by the local Central Bank
• C) Regular tests for loss of access to external liquidity platforms but not loss of service to clients should be undertaken
• D) Testing of the system's capability to cope with extreme volumes should be carried out annually

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Definitions:

Activity Level

In cost accounting, the volume of output or production that impacts the cost of a specific activity.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and constitute a significant part of the product’s cost.

Direct Labor

The wages and expenses directly associated with the manufacturing of goods or provision of services, including the work of employees on the production line.

Variable Costs

Costs that vary in direct proportion to changes in levels of production or sales, such as raw materials and labor expenses.