NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to Securities Broking Operations
In the context of a stock broker's operations, what is the 'Unique Client Code' (UCC) primarily used for?
The Unique Client Code is used to identify each client uniquely on the exchange system, so every order and trade can be traced to a specific client. It is not used to set brokerage, margin rates or demat balances.
- AIdentifying each client uniquely on the exchange system for orders and tradesCorrect
- BCalculating the brokerage rate for the client
- CFixing the margin percentage applicable to the client
- DRecording the client's demat account balance with the depository
Explanation
Exchanges require every order to carry a client code so that each trade can be traced to a specific client. The UCC is therefore an identifier, and it does not determine brokerage, margin rates or demat balances.
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