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Financial Dispute Management in Treasury Operations

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Questions and Answers

Why is it important for the dealer to alert senior management as soon as a mistake or dispute arises?

To ensure that the dispute is resolved in a timely manner
To prevent any further loss from occurring (correct)
To eliminate the risk of market participants benefiting from the dispute
To ensure that both parties agree to close out the position

What is the significance of closing out a position with agreement from both parties in case of disputes involving an open position or unmatched position?

It allows dealers to cover their risk positions outside normal trading hours
It reduces the involvement of senior management in dispute resolution
It ensures equitable resolution and prevents market participants from benefitting (correct)
It eliminates the risk of any further disputes

Why should management explicitly specify the dealers authorized to deal in off-premises or after-hours transactions?

To enable senior management to have more control over dealers' activities
To ensure that all dealers are equally involved in off-premises transactions
To establish a clear procedure for prompt reporting and recording of off-premises transactions (correct)
To prevent disputes from arising during off-premises dealing

What is the purpose of reporting and recording off-premises transactions according to the text?

To provide a record that cannot be erased without senior management approval (A) Signup and view all the answers

Why is it crucial for senior management to be involved in the early stage of disputes according to the text?

To better deal with disputes as an inter-institutional issue and eliminate the risk of further loss (D) Signup and view all the answers

What should management put in place to ensure clear guidelines for dealers regarding permitted products and limits?

Written guidelines on permitted products and limits (D) Signup and view all the answers

What must dealers be made aware of regarding off-premises trades, according to Principle 15 of FXGC 44?

They are deemed valid and binding (D) Signup and view all the answers

What does the dealing room security measures aim to control?

Access to confidential information and equipment (D) Signup and view all the answers

What is crucial regarding access by developers to production systems according to the text?

Developers should have restricted and controlled access to production systems (B) Signup and view all the answers

What should be available for review according to the text in relation to system actions by users and developers?

A complete audit trail of all actions by users and developers (C) Signup and view all the answers

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