CMFAS RES 2B Derivatives-Specific Conduct Rules & OTC Market Infrastructure question: core feature

CMFAS RES 2BDerivatives-Specific Conduct Rules & OTC Market Infrastructure

Which combination correctly matches the offence to its core feature?

A false trading = false appearance of active trading; bucketing = order not executed on the market
B manipulation = a single wash trade; cornering = spreading rumours
C insider trading = two or more transactions to peg price; stabilisation = tipping
D bucketing = trading on non-public price-sensitive info; insider trading = order not executed on market

Show the answer and explanation

Answer: A. false trading = false appearance of active trading; bucketing = order not executed on the market

False trading is about creating a false appearance of active trading (e.g. wash trades), and bucketing is purporting to execute a client order on a market without actually transacting on that market. The other options mismatch the offences.

Common mistake

Watch the swapped definitions in the distractors — bucketing is about non-execution, not inside information.

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Related CMFAS RES 2B questions

Mr Sim, a representative at Arc Futures, receives an order from a fund to buy 400 lots of a crude oil futures contract. Before entering it he buys 20 lots for his own account. He then telephones a dealer at another firm and the two agree to trade 200 lots at 78.40 before either side reaches the market. For the remaining 200 lots he tells the fund the order was filled at 78.45, when in truth nothing was sent to the exchange and Arc booked the other side internally at 78.35. How are the three acts classified, in order?NK225 futures: existing bid 11710, existing offer 11740, last traded 11740. An approved trader receives simultaneous buy and sell orders from different customers at 11740. Which order should he expose to the market first?Match the practice to the description. Which pairing is CORRECT?

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Original study material mapped to the public CMFAS RES 2B syllabus. Unofficial, not endorsed by MAS or IBF. Verify figures and rules against current guidance before relying on them.