Which of the Following Statements Is Incorrect Regarding Organized Exchanges

question 25

Multiple Choice

Which of the following statements is incorrect regarding organized exchanges trading financial futures contracts?

• A)Organized exchanges establish and enforce rules for the trading of financial futures contracts.
• B)Organized exchanges ensure that the seller of the futures contract always delivers the securities covered by the contract, whether the contract was settled prior to the settlement date or not.
• C)Organized exchanges clear, settle, and guarantee all transactions that occur on their exchanges.
• D)The operations of financial futures exchanges are regulated by the Commodity Futures Trading Commission (CFTC).
• E)All of the above are correct.

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Definitions:

Reasonable Doubt

A standard of proof in criminal law that requires the prosecution to prove the defendant's guilt to such a degree that a reasonable person would have no question of the defendant's guilt.

Liability

A legal obligation to settle a debt or responsibility, which can arise from contracts, torts, or statutes requiring individuals or entities to compensate for losses or damages caused.

False Entries

Incorrect or misleading information entered into a record or document, particularly with the intent to deceive.

Defalcation

Misappropriation of funds or embezzlement, typically by a person trusted with the management of those funds.