NISM Certifications · NISM-Series-VIII: Equity Derivatives · Trading Mechanism
In the Indian equity derivatives market, a trading member who is allowed to trade only on his own account and not on behalf of clients is best described as a:
The member is a proprietary trading member, because such a member trades only for its own account and does not carry out trades on behalf of clients. The other options describe clearing roles or client-based business rather than own-account-only trading.
- AProfessional clearing member
- BProprietary trading memberCorrect
- CSelf-clearing member
- DTrading-cum-clearing member for clients
Explanation
A member who trades only on own account and has no client business is described as a proprietary trading member. Clearing member categories relate to clearing and settlement functions, not to whether trades are for own account. Self-clearing and professional clearing members describe clearing arrangements, so they do not fit this description.
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