The market must provide an electronic trading system which ensures:
A.
The ability to manually stop purchase orders which exceed the limits of the broker's bank guarantee or reach the limit of a special order
B.
The automatic stopping of purchase orders which exceed the limits of the broker's bank guarantee or reach the limit of a special order
C.
Privacy to enable all companies and entities whose securities are listed in the market, and their registrars, to keep the information secret
D.
Provision of trading accounts that can be opened in the names of two or more investors without the requirement for Authority approval
The Answer Is:
B
This question includes an explanation.
Explanation:
The CISI UAE Financial Rules and Regulations specifies core controls that must be incorporated into a market's electronic trading system. One of the principal controls is the automatic stopping of purchase orders where those orders exceed the limits supported by a broker's bank guarantee or reach the threshold applicable to a special order. Automation is significant because the control must operate at system level and prevent a broker from accepting exposure beyond the financial security available to support its transactions. The CISI material defines a special order as an order approved in advance by the market for a securities transaction exceeding 80% of the amount of the broker's bank guarantee. The requirement is therefore not merely a facility enabling manual intervention, making option A incorrect. The electronic system must also enable listed entities and their registrars to view their own share registers; it is not designed simply to conceal that information. Multiple-investor trading-account provisions are governed separately. Consequently, option B directly reproduces the required electronic-trading safeguard and is the correct answer.
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