|Investment Management (Level 4)
Investment Management Level 4; Chapter 3, Section 3.2.5 (syllabus version 1 and covering exams from 11 October 2012 until 31 January 2016).
The text in Section 3.2.5 of Chapter 3 currently states that the main types of orders that can be entered into stock exchange systems are described in Chapter 5. However, the following additional information has been added to this section:
3.2.5 Main Types of Market Orders
• Limit orders have a price limit and a time limit. For example, a limit order may state ‘sell 1,000 shares at 360p by next Tuesday’. Any time limit up to a maximum of 90 days can be put on these orders. If no time limit is placed on the order, it will expire at the end of the day that it is entered. Limit orders can be partially filled, and it is only limit orders that are displayed on the SETS order book.
• Iceberg orders are a particular type of limit order. They enable a market participant with a particularly large order to partially hide the size of their order from the market and reduce the market impact that the large order might otherwise have. The term ‘iceberg’ comes from the fact that just the top part of the order is on view (the peak of the iceberg), and the rest is hidden (the bulk of the iceberg is below the water). Once the top part of the order is executed, the system automatically brings the next tranche of the iceberg order onto the order book. This process continues until the whole of the iceberg order has been executed, or the time limit for the order expires.
• Named orders are non-anonymous limit orders available to all participants on SETSqx.
• At market (also known as ‘at best’) orders can only be input during automatic execution and have no specified price. The order will fill as much as possible at any available price and the remainder will be cancelled; it does not wait on the order book to match against later orders.
• Execute and eliminate orders can only be entered during automatic execution. As with the at best order, this type will execute as much of the trade as possible and cancel the rest. However, unlike an at best order, this order type has a specified price and will not execute at a price worse than that specified.
• Fill or kill orders can only be entered during automatic execution. They normally have a specified price (although they can be entered without one) and either the entire order will be immediately filled at a price at least as good as that specified, or the entire order will be cancelled (ie, if there are not enough orders at the price specified or better).
• A market order is a buy or sell order that is to be executed immediately at prevailing market price. Providing that there are available buyers and sellers, market orders are executed. The purpose of these order types is to achieve execution rather than specifying a price, which means the order giver cedes any real control over the price that will be achieved. The order can be executed with a number of different ‘fills’ being split across more than one order book counterparty. There may also be different prices for each fill.
|29/09/2014 - 31/01/2016
|Securities (Investment Advice Diploma)
In October and November this year, a number of European markets will change their settlement periods to T+2. Candidates are advised that examinations will continue to test the settlement periods as stated in the current version of the CISI workbook until the syllabus is republished on 31 December 2014, after which time the new settlement periods, as stated in the new Edition 5 of the CISI workbook, may be examined.
|02/09/2014 - 31/12/2014
|Investment, Risk & Taxation
Please see the below correction from Chapter 4, Section 11.3.3 of the Investment, Risk & Taxation Edition 4 workbook.
Common Tax Computations Example
James is 38 years old, married with children, and has gross monthly earnings of £3,800 from employment. Calculate his net monthly pay after income tax.
Gross income £3,800.00
Personal allowance (£9,440/12) £786.67 £0.00
Taxable income £3,013.33
Income taxable at basic rate £0 – £32,010/12) £2,667.50 £533.50
Income taxable at higher rate (£3,013.33 – £2,667.50) £345.83 £138.33
Total income tax payable £671.83
Net monthly pay £3,800 – £671.83 = £3,128.17
|02/01/2014 - 30/10/2014