CISI UAE FRR Market Conduct Rules

Question 1

Under UAE SCA regulations, 'insider trading' occurs when a person trades on:

Accepted Answer

Material non-public information about a listed company

Answer

Publicly available analyst reports

Answer

Information from general market commentary

Answer

News published in financial newspapers

Question 2

The SCA's Market Conduct Regulations define 'market manipulation' to include:

Accepted Answer

Transactions or orders that create a false or misleading impression of supply, demand, or price

Answer

Any trading activity that results in profit

Answer

Short selling of securities

Answer

Trading after market hours

Question 3

Under UAE market conduct rules, 'front running' involves:

Accepted Answer

A broker trading for their own account before executing a large client order to benefit from the price movement

Answer

A firm releasing research before the market opens

Answer

Placing orders immediately after market opening

Answer

Trading securities on behalf of foreign clients

Question 4

The 'Chinese Wall' in UAE financial institutions is a:

Accepted Answer

Information barrier between investment banking and trading/research departments

Answer

Firewall protecting IT systems from cyber attacks

Answer

Physical security barrier in trading floors

Answer

Regulatory reporting system

Question 5

Under SCA regulations, companies must announce material price-sensitive information:

Accepted Answer

Immediately upon becoming aware, before trading recommences

Answer

Within 30 days of the information arising

Answer

In the annual report only

Answer

After market close on the day of discovery

Question 6

UAE market conduct rules on 'short selling' require:

Accepted Answer

Disclosure of significant net short positions and compliance with approved short selling frameworks

Answer

Complete prohibition of all short selling

Answer

Short selling only through designated broker-dealers

Answer

Approval of each short sale by the SCA