FIA Financial Technology & Systems 2

Question 1

Which messaging standard is most commonly used for interbank financial message exchange in the SWIFT network?

Accepted Answer

MT (Message Type) format

Answer

ISO 20022

Answer

FIX Protocol

Answer

XBRL

Question 2

In securities trading, what does the term 'straight-through processing' (STP) refer to?

Accepted Answer

Automated processing of trades without manual intervention

Answer

Manual review of each trade before settlement

Answer

A trading strategy that avoids market impact

Answer

A regulatory reporting framework

Question 3

Which technology underlies most modern electronic order books in equity markets?

Accepted Answer

Matching engine with price-time priority

Answer

Distributed ledger technology

Answer

Neural network algorithms

Answer

Cloud-based batch processing

Question 4

What is the primary purpose of a Central Securities Depository (CSD) in financial markets?

Accepted Answer

To hold and administer securities in immobilized or dematerialized form

Answer

To set interest rates for government bonds

Answer

To provide credit ratings for securities issuers

Answer

To execute trades between brokers and dealers

Question 5

In the context of financial data, what does 'latency' most critically measure for high-frequency trading firms?

Accepted Answer

The time delay between a market event and its processing

Answer

The accuracy of market data feeds

Answer

The cost of data subscriptions

Answer

The number of trades executed per second

Question 6

Which protocol is specifically designed for real-time market data distribution in financial services?

Accepted Answer

Multicast UDP

Answer

REST API

Answer

SOAP

Answer

GraphQL

Question 7

What is 'co-location' in the context of algorithmic trading infrastructure?

Accepted Answer

Placing trading servers physically close to exchange matching engines

Answer

Sharing office space between competing firms

Answer

Running backup systems in a secondary data center

Answer

Combining multiple trading strategies in one system