CIRO Institutional Securities Practice Questions - CIRO Institutional Securities Exam (ISE) Exam - CIRO Institutional Securities Practice Questions - CIRO Institutional Securities Exam (ISE) Exam

Question 1

Which of the following best describes the core difference between a sell-side dealer acting as a principal versus acting as an agent in a trade execution?

In a principal trade, the dealer commits its own inventory capital to facilitate the trade; in an agency trade, the dealer matches the buyer and seller without taking a position. In an agency trade, the dealer takes a temporary proprietary position to facilitate a block; in a principal trade, the dealer works the order in the market. Principal trades are executed exclusively on dark pools to minimize market impact, while agency trades are routed to lit marketplaces. Agency trades involve charging a markup or markdown on the security's price, whereas principal trades involve charging a transparent commission.

Correct Answer:

In a principal trade, the dealer commits its own inventory capital to facilitate the trade; in an agency trade, the dealer matches the buyer and seller without taking a position.

Question 2

An institutional client requests a firm bid from an investment dealer for 200,000 shares of a TSX-listed stock. The dealer bids $25.50 and takes the position into inventory. What role is the dealer performing?

Agency trading Jitney execution Inventory facilitation Market-on-Close matching

Correct Answer:

Inventory facilitation

Question 3

Under UMIR, what is the standard trading unit for an equity security priced at $0.05 per share?

100 shares 500 shares 1,000 shares 5,000 shares

Correct Answer:

1,000 shares

Question 4

A dealer enters an order on a Canadian marketplace for a stock priced at $0.45 per share. Under UMIR Rule 6.1, what is the minimum trading increment for this order?

$$0.001 $$0.005 $$0.01 $$0.05

Correct Answer:

$$0.005

Question 5

Under UMIR, which of the following describes a 'Jitney' order?

An order executed by a Participant on behalf of another Participant who does not have access to that specific marketplace. An order routed automatically by a smart order router to the marketplace with the deepest liquidity. A proprietary trade executed by a market maker to stabilize an security's price. An order that bundles retail and institutional client requests to achieve volume discounts.

Correct Answer:

An order executed by a Participant on behalf of another Participant who does not have access to that specific marketplace.

Question 1

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Prepare with the CIRO Institutional Securities Practice Questions - CIRO Institutional Securities Exam (ISE) Exam practice quiz. This question bank includes 100 questions covering dealer, client, order, institutional, and execution. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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CIRO Institutional Securities Practice Questions - CIRO Institutional Securities Exam (ISE) Exam

This practice set contains 100 questions from the matching question bank and focuses on dealer, client, order, institutional, and execution. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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CIRO Institutional Securities Practice Questions - CIRO Institutional Securities Exam (ISE) Exam

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