Mixed Deck — All FTT Topics Flashcards

In SGX futures trading, what does 'open interest' represent?

Answer: The total number of outstanding futures contracts that have not yet been settled, closed, or expired

Open interest is the total number of futures contracts that are outstanding — they have been entered into but not yet closed out, exercised, or expired. Rising open interest indicates new money flowing into the market; falling open interest indicates contracts are being closed.

What does a yellow box junction marking mean in Singapore?

Answer: Do not enter the box unless your exit is clear; stopping in the box is an offence

A yellow box junction must be kept clear. You must not enter the box unless you can see that your exit road is clear. Stopping inside the box is an offence that incurs fines and demerit points.

What is 'market manipulation' under the SFA?

Answer: Creating a false or misleading appearance of active trading or price of a security

Market manipulation under the SFA involves creating a false or misleading appearance of active trading in, or the price of, a security. This includes wash trades, painting the tape, and other deceptive practices.

A broken-down vehicle is partially blocking a lane on the expressway. You should:

Answer: Slow down early, change to a clear lane, and drive past carefully

Slowing down and changing lanes early gives you and others a safe margin to pass the obstruction without causing a secondary collision.

What compensation can an injured party claim from the driver at fault in a Singapore traffic accident?

Answer: Medical expenses, loss of income, vehicle repair costs, rental car costs, and pain and suffering

An injured party can claim various types of damages including medical bills, loss of earnings, vehicle repair or replacement costs, transport expenses, and general damages for pain and suffering.

What is required of an SGX trading member when onboarding a new institutional client?

Answer: Verification of the client's legal status, authorised signatories, and completion of AML/CFT due diligence

When onboarding institutional clients, trading members must conduct appropriate due diligence including verifying the entity's legal status, identifying authorised signatories and beneficial owners, and completing AML/CFT checks, though the process may differ from retail client onboarding.

What are the three stages of money laundering?

Answer: Placement, layering, and integration

Money laundering typically occurs in three stages: Placement (introducing illegal funds into the financial system), Layering (conducting complex transactions to obscure the trail), and Integration (reintroducing the laundered funds into the legitimate economy as clean money).

What does an Electronic Road Pricing (ERP) gantry sign displaying a dollar amount indicate?

Answer: The toll for using the road ahead at the current time

ERP gantries display the current charge for passing through at that time. Rates vary by time of day, with higher charges during peak hours to manage congestion on Singapore roads.

What is the minimum legal tyre tread depth in Singapore?

Answer: 1.6 mm

The legal minimum tyre tread depth in Singapore is 1.6 mm across the central three-quarters of the tyre. Below this level, the tyre is illegal and unsafe, especially in wet conditions.

What is the maximum speed limit on most Singapore expressways?

Answer: 90 km/h

The maximum speed limit on most Singapore expressways is 90 km/h.

Which of the following is an example of 'false trading' under the SFA?

Answer: Conducting wash sales to create an appearance of active trading

False trading includes wash sales — buying and selling the same security between related parties — to create a misleading appearance of active trading without any genuine change in beneficial ownership.

What is the purpose of the SFA's 'take-over' provisions and the Singapore Code on Take-overs and Mergers?

Answer: To ensure fair and equal treatment of all shareholders in take-over transactions and to regulate mandatory offers when a person acquires 30% or more of a company

The Singapore Code on Take-overs and Mergers, administered by the Securities Industry Council (SIC), ensures that all shareholders receive fair and equal treatment in take-over situations. The key provision requires a mandatory general offer when a person or concert party acquires 30% or more of a company's voting shares.

What are demerit points in Singapore's driving system?

Answer: Points accumulated for traffic offences; exceeding the threshold leads to licence suspension

The Demerit Points System (DIPS) assigns points for traffic offences. Accumulating 24 or more points within 24 months results in licence suspension for the first offence.

SGX's 'buying-in' procedure is initiated when:

Answer: A seller fails to deliver securities on the settlement date

The buying-in procedure on SGX is initiated on the settlement date (T+2) when a seller fails to deliver the securities sold. SGX or the clearing house will buy in the securities in the market and charge any additional costs to the defaulting seller.

What is a Cash Transaction Report (CTR) and when must it be filed in Singapore?

Answer: A report to STRO required when a cash transaction equals or exceeds S$20,000, or when multiple transactions appear structured to avoid this threshold

CTRs must be filed with STRO for any cash transaction (or multiple related transactions that appear to be structured) equalling or exceeding S$20,000. The threshold applies to the total cash value involved, and structuring to avoid the threshold is itself an offence.

When you see flashing amber lights and traffic cones narrowing your lane on an expressway, you should:

Answer: Reduce speed and be prepared to stop or give way if necessary

Flashing amber lights and lane narrowing indicate a road work zone, requiring reduced speed and heightened alertness for workers and equipment.

What type of order allows a trader to specify both a stop price and a limit price?

Answer: Stop-limit order

A stop-limit order combines features of a stop order and a limit order. When the stop price is triggered, the order becomes a limit order at the specified limit price, giving the trader control over the execution price while automating activation.

What must a company director do before trading in the company's shares?

Answer: Give prior written notification to the company and observe blackout periods around results announcements

Directors must notify the company before trading and must comply with blackout periods (typically 2 weeks before financial results announcements) when trading is prohibited. Notification must be made within 2 business days of any transaction under Singapore rules.

What is the minimum age to be registered as a CMS Representative in Singapore?

Answer: 21 years old

Under the SFA, a person must be at least 21 years of age to be appointed and registered as a CMS Representative, ensuring a minimum level of maturity and professional development.

The Electronic Road Pricing (ERP) system deducts charges from your In-Vehicle Unit when you:

Answer: Pass under an active ERP gantry during its charging hours

ERP charges are deducted electronically when your vehicle passes under an active ERP gantry during the designated charging period.