Examkin

Soru

Zorluk: Çok zorMarket Participants and Investor Classifications

Compliance officers and market participants must distinguish between regulatory investor classifications and market entity operational roles. Which of the following statements regarding investor classifications and financial market participant capacities are CORRECT? Select all that apply.

  1. An individual holding a Series 7, Series 65, or Series 82 license in good standing qualifies as an accredited investor under SEC Regulation D, regardless of their personal net worth or annual income.Cevap
  2. The National Securities Clearing Corporation (NSCC) acts as a central counterparty providing trade clearance and netting services, whereas the Depository Trust Company (DTC) provides custody and book-entry settlement services.Cevap
  3. C
    A registered investment adviser managing $75 million in customer securities portfolios on a discretionary basis qualifies as a Qualified Institutional Buyer (QIB) under SEC Rule 144A.
  4. D
    When a broker-dealer executes a customer trade in an agent capacity, it fills the buy order using its own inventory and charges a mark-up rather than a commission.

Cevap

The correct statements are the statement regarding Series 7, 65, or 82 license holders qualifying as accredited investors regardless of income/net worth, and the statement regarding NSCC handling trade clearance/netting while DTC provides custody and settlement services.
The statement concerning licensed credentials accurately reflects SEC Regulation D rules granting accredited status to Series 7, 65, and 82 holders without financial requirements. The statement concerning clearing infrastructure correctly separates NSCC central counterparty netting from DTC asset custody and book-entry settlement.

Adım Adım Çözüm

1
Evaluate the accredited investor criteria under SEC Regulation D.
Confirm that individuals with Series 7, Series 65, or Series 82 licenses in good standing meet accredited investor status regardless of financial thresholds.
SEC rules permit professional credentials as an independent qualifying standard for accredited investor status.
2
Evaluate clearing and depository functional roles.
Confirm that NSCC performs trade netting and clearance as a central counterparty, while DTC acts as the securities depository for custody and settlement.
NSCC and DTC fulfill complementary but distinct roles under the DTCC clearing agency umbrella.
3
Evaluate Qualified Institutional Buyer (QIB) financial requirements under Rule 144A.
Identify that an entity managing 75milliondoesnotmeettheminimumthresholdof75 million does not meet the minimum threshold of 100 million in owned/invested securities required for QIB status.
Rule 144A strictly sets the QIB qualification threshold at $100 million in eligible securities for institutional entities.
4
Evaluate broker vs. dealer operational capacities.
Identify that executing from inventory with a mark-up defines principal capacity, not agent capacity.
Agent capacity requires acting as a broker matching trades for a commission without committing inventory.

Anahtar Kavram

Distinguishing investor qualification thresholds (Accredited vs. QIB), clearing agency roles (NSCC vs. DTC), and broker-dealer transaction capacities (Agent vs. Principal).
Bu soruyu puanla

Konular

Market Participants and Investor Classifications

Bu konudan daha fazla soru