JSE Brokerage Operations case studies
JSE Brokerage Operations · Put your knowledge to work in context.
The JSE Brokerage Operations examination is the knowledge check that sits behind back-office and middle-office roles at Jamaican broker-dealers and connected firms. It tests whether a candidate understands how an order becomes a settled, reconciled, correctly registered position: the JSE rules and the surrounding regulatory framework, order handling and execution, clearing and settlement through the central securities depository, client onboarding and AML obligations, corporate actions, client money controls, and professional conduct. The JSE Brokerage Operations case studies are 5 cases and about 3,411 words.
1The Error Account That Became a Proprietary Trade
At a JSE equities member, a client's R12.4 million buy order for 80,000 shares in a mid-cap is rejected by the automated credit check because the client's cash collateral is R400,000 short. The dealer, under pressure to protect the relationship, executes the order on the firm's error account at R155.00 and later sells the shares at R157.20, booking a R176,000 profit to the proprietary desk.
773 words, about 4 min2The VWAP Order and the Proprietary Bid
A JSE member receives a discretionary VWAP instruction from a portfolio manager to buy 600,000 shares of a mid-cap over two trading days, with a volume cap of 10% of daily traded volume. The dealer also runs a proprietary book that already holds 50,000 shares.
667 words, about 3 min3The Pledged Shares That Never Settled
On Monday 6 May, a JSE member sells 250,000 shares in a listed property fund for a client at R10.50. The trade is due to settle on Thursday 9 May on a T+3 basis.
668 words, about 3 min4The Mauritius Trust With a Crypto Source
A stockbroker receives an account application from Kalahari Metals (Pty) Ltd, a South African company wholly owned by a Mauritius discretionary trust. The trust deed shows a protector who is a South African resident and former municipal official, three beneficiaries including a foreign national, and a sole director aged 28 with no investment experience.
674 words, about 3 min5The Trust Account That Was R1.2 Million Short
On Monday morning, a JSE member's operations manager reconciles the designated client trust account. The bank balance is R1.2 million below the total of client ledger balances.
629 words, about 3 min