In all dealing conversations, the Model Code strongly recommends:
A) Dealers stick to market terminology in order to avoid the impression that they are offering an advisory or fiduciary role.
B) Dealers clarity what is being proposed rather than using any terminology that could be misinterpreted.
C) Dealers restrict themselves to terminology listed and explained in Chapter 11 of the Model Code.
D) Dealers define complex terminology in the confirmation of a deal.

Question

Quizplus · Accepted Answer

Dealers should use clear and unambiguous terminology to avoid misinterpretation and misunderstanding between counterparties. It is important to ensure both parties understand the terms of the agreement and what is being proposed. While the Model Code provides a list of recommended terminology in Chapter 11, it is not necessary to restrict oneself to this list as long as the terms used are easily understood by both parties. Dealers should also define any complex terminology in the confirmation of the deal to ensure complete transparency.

In All Dealing Conversations, the Model Code Strongly Recommends