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The system used to report municipal securities transactions is called the: Trade Reporting and Compliance System Order Audit Trail System Trade Reporting and Compliance Engine Real-Time Transaction Reporting System
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Broker-dealers are required to report transactions in municipal securities to the Real-Time Transaction Reporting System (RTRS), which is operated by the MSRB.
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The Securities Exchange Act of 1934: Created the SEC Provided for the regulation of credit Provided for the regulation of exchanges Provided for the regulation of new issues I and III only I and IV only I, II, and III only II, III, and IV only
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The Securities Exchange Act of 1934 created the SEC and provided for the regulation of credit and exchanges. The Securities Act of 1933 provided for the regulation of new issues.
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A municipal securities principal must approve: Memos in response to customer complaints The opening of accounts Advertisements to be used for a seminar Correspondence to customers
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MSRB rules require a municipal securities principal to approve all the choices given. In addition, the principal must approve all transactions and must frequently review all discretionary accounts.
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An investor who sells 1 GE Dec 50 call and sells 1 GE Dec 40 put has: Created a vertical spread Created a horizontal spread Sold a straddle Sold a combination
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Selling a call and put on the same security with different strike prices, or different expiration dates, is a short combination.
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All of the following municipal bond transactions take place in the secondary market, EXCEPT: Submitting an offer to sell bonds to a sinking fund A tax swap Two municipal securities broker-dealers purchasing a block of bonds jointly The placing of a designated order
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All of the choices listed take place in the secondary market except the placing of a designated order. A designated order is an order directed to a syndicate manager by an institutional account designating two or more members of the underwriting account to receive credit for that order. This order is placed directly with the syndicate manager during the order period prior to the release of the bonds for secondary trading.
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Which of the following securities is an example of a collateralized time draft? Commercial paper American Depositary Receipts Bankers’ acceptances Eurodollars
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A BA (banker’s acceptance) is used to facilitate foreign trade. It is a time draft that has been guaranteed (collateralized) by a bank.
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Order Audit Trail System
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An automated computer system owned by the National Association of Security Dealers (NASD) that is used to record information relating to orders, quotes and other related trade information from all equities that are traded on the Nasdaq, including over the counter (OTC) stocks. This system simplifies an order’s progression from the initial receipt of the order to its eventual execution or cancellation, so that it can be easily tracked for auditing purposes.
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Real-Time Transaction Reporting System
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Broker-dealers are required to report transactions in municipal securities to the Real-Time Transaction Reporting System (RTRS), which is operated by the MSRB.

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