CMFAS RES 1A The Trading System & Infrastructure question: married deal or negotiated off-market transaction reported to SGX

CMFAS RES 1AThe Trading System & Infrastructure

A 'married deal' or negotiated off-market transaction reported to SGX is one where:

A The buyer and seller agree terms privately, then report the trade to the exchange
B The orders are matched anonymously in the central order book at the best available price
C The exchange sets the price and allocates the shares to both parties
D The parties agree terms privately and need not report the trade

Show the answer and explanation

Answer: A. The buyer and seller agree terms privately, then report the trade to the exchange

In a negotiated/married transaction, the parties agree the terms bilaterally and report the trade to the exchange within the rules, rather than matching anonymously in the order book. Reporting maintains transparency.

Common mistake

Off-market negotiated trades must still be reported under the rules.

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