🔥 Daily ChallengeCIREMarket integrity, trade execution and settlementMedium
Which of the following describes the correct timing for a 'firm arrangement' to borrow securities when a Participant is restricted under UMIR Rule 3.4?
3 attempts · 0% correct
The arrangement must be made prior to the entry of the short sale order on a marketplace.Correct
The arrangement must be confirmed by the Market Regulator before the order is entered.
The arrangement must be finalized before the trade reaches the settlement date.
The arrangement must be documented within 24 hours of the trade execution.
Why
Rules 3.4(1)(a) and 3.4(2)(a) both require that the firm arrangement to borrow must be made 'prior to the entry of the order'.
