n NISM Certifications
VII NISM Series VII
Medium

The Trading cum Clearing Members (TCMs) of a Currency Derivatives exchange can _______.

Practice question from NISM Series VII Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Trade on clients’ behalf

  2. B

    Clear and settle their own trades and trades of other members

  3. C

    Execute trades on their own behalf

  4. All of the above

    Correct answer

Why this is the answer

TCMs have trading and clearing rights; they can trade for themselves, for clients, and clear trades for other members.

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