n NISM Certifications
VII NISM Series VII
Medium

The pay-in and pay-out of daily Mark-to-Market (MTM) settlement is affected ________.

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

Options

  1. A

    Before 9:00 am

  2. B

    Before 9:30 am

  3. C

    Before 10:30 am

  4. At the start of market hours

    Correct answer

Why this is the answer

Pay-in and pay-out of daily MTM obligations are completed before the market opens (around 9:00 a.m.) on the next trading day, as per clearing corporation norms

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