Question l (6 marks) [Reference: Topic 1, 3)- The following table shows the details of two trades executed by Sha Tin Securiies with the same counterparty. ade reference Transaction type Trading book Trade date Value date e reference Sha Tin 20184473 Principal Transaction type Trading book Trade date Value date Operation Quantity Principal 26th November 28th November Buy 8,000 Hang Seng Bank HKD 176.00 David Securities 26th November 28th November Sell 14,000 Hang Seng Bank HKD 177.00 David Securities Quantity Price Price Counterparty security and cash positions records dated 25th November are given below: Hang Seng Bank Trading book X 17,000 17,0D0 17,000 17,000 Custodian Forever Bright Dollars Location Trading book X 6,060,000.00 +6,06D,000.00 6,060,000.00 Custodian Forever Bright 6,060,000.00 Suppose Sha Tin Securities selects the same custodian Forever Bright ohandle the settlement of the two trades above. Required (a) If Sha Tin Securities and David Securities has bilateral netting agreement. use the following template to prepare the pre-settlement trade record as at 26th November (after the trades) for the security position and cash position. Show the positive sign and or negative sign properly in your record. Hang Seng Bank (2 marks) (b Supposef settlement has occurred for the trades above. Use the following template to prepare the post-settlement trade record as at 28th November (after the trades are settled) for the security position and cash position. Show the positive sign andlor negative sign properly in your record Bank Location Hong Kon Dollars (2 marks)- (c) Suppose no other trades are settled by the Custodian Forever Bright within the above period. Use the following template to show how the quantity and dollar value entries should look like on settlement date 28November Custodian Forewer Bright Statement of securities account for Sha Tin Securities Balance brought forward from 27th Novemker 2Bth NovInstruction reference Sha Tin 20184466& Sha Tin 20184473 s at 28th November Stermenst ef h Coustocian Forewere Statement HIKD cash account for Sha Tin Securities Entry date Debit Balance brought forwand from 27th November Instruction reference Sha Tin 20184466&Sha Tin 20184473 2Bth No Question l (6 marks) [Reference: Topic 1, 3)- The following table shows the details of two trades executed by Sha Tin Securiies with the same counterparty. ade reference Transaction type Trading book Trade date Value date e reference Sha Tin 20184473 Principal Transaction type Trading book Trade date Value date Operation Quantity Principal 26th November 28th November Buy 8,000 Hang Seng Bank HKD 176.00 David Securities 26th November 28th November Sell 14,000 Hang Seng Bank HKD 177.00 David Securities Quantity Price Price Counterparty security and cash positions records dated 25th November are given below: Hang Seng Bank Trading book X 17,000 17,0D0 17,000 17,000 Custodian Forever Bright Dollars Location Trading book X 6,060,000.00 +6,06D,000.00 6,060,000.00 Custodian Forever Bright 6,060,000.00 Suppose Sha Tin Securities selects the same custodian Forever Bright ohandle the settlement of the two trades above. Required (a) If Sha Tin Securities and David Securities has bilateral netting agreement. use the following template to prepare the pre-settlement trade record as at 26th November (after the trades) for the security position and cash position. Show the positive sign and or negative sign properly in your record. Hang Seng Bank (2 marks) (b Supposef settlement has occurred for the trades above. Use the following template to prepare the post-settlement trade record as at 28th November (after the trades are settled) for the security position and cash position. Show the positive sign andlor negative sign properly in your record Bank Location Hong Kon Dollars (2 marks)- (c) Suppose no other trades are settled by the Custodian Forever Bright within the above period. Use the following template to show how the quantity and dollar value entries should look like on settlement date 28November Custodian Forewer Bright Statement of securities account for Sha Tin Securities Balance brought forward from 27th Novemker 2Bth NovInstruction reference Sha Tin 20184466& Sha Tin 20184473 s at 28th November Stermenst ef h Coustocian Forewere Statement HIKD cash account for Sha Tin Securities Entry date Debit Balance brought forwand from 27th November Instruction reference Sha Tin 20184466&Sha Tin 20184473 2Bth No
