Module: | HFT Presumptive List & RBI Powers
Q14: Which of the following statements regarding the "Presumptive List" for Held for Trading (HFT) classification are correct?
1. Instruments resulting from market-making activities are presumed to be HFT.
2. Listed equities are generally presumed to be HFT.
3. All repo-style transactions are automatically HFT without exception.
4. Repo-style transactions entered for liquidity management and valued at accrual are excluded from the HFT presumption.
2. Listed equities are generally presumed to be HFT.
3. All repo-style transactions are automatically HFT without exception.
4. Repo-style transactions entered for liquidity management and valued at accrual are excluded from the HFT presumption.
✅ Correct Answer: B
Statements 1, 2, and 4 are correct.
Market-making instruments and listed equities are presumed HFT.
However, statement 3 is incorrect because there is a specific exception: repo-style transactions entered for liquidity management and valued at accrual are not part of the HFT presumption in Investment Classification MCQs.
Market-making instruments and listed equities are presumed HFT.
However, statement 3 is incorrect because there is a specific exception: repo-style transactions entered for liquidity management and valued at accrual are not part of the HFT presumption in Investment Classification MCQs.