n NISM Certifications
NSM General NISM
Medium

A trading member of the exchange can do which of the following?

Practice question from NISM Series IV - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Execution of trades

    Correct answer

  2. B

    Clearing and settlement of trades

  3. C

    Both 1 and 2

  4. D

    None of the above

Why this is the answer

A Trading Member is authorized to execute trades on the exchange but must rely on a Professional Clearing Member for clearing and settlement.

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