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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Identify trading limits
   • Access and accurately interpret various types of trading limits in an organisation
   • Identify organisational trading limits and incorporate in any potential transaction or position assessment
   • Constantly monitor, interpret and apply changes to organisational trading limits
2. Respond to trading limit breaches
   • Follow and comply with process for identifying and reporting potential trading breaches to relevant personnel according to organisational guidelines
   • Identify and comply with organisational process for approving limit breaches, including all communication requirements
   • Identify and comply with organisational process for dealing with inadvertent breaches, including all communication requirements
   • Manage consequences of breach according to organisational guidelines
3. Review trading limits
   • Monitor trading limits in place and compare with current trading position
   • Identify when trading limit is close to being met, and devise appropriate response

Performance Evidence

Evidence of the ability to:

identify and monitor financial trading limits using a range of data sources

deal effectively and promptly with financial trading limit breaches following all required industry and organisational policy and procedures.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

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Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

assess the impact of the following key economic features on trading limits:

characteristics and impacts of economic and business cycles

monetary and fiscal policies

interest rates, exchange rates and inflation

discuss the purpose of trading limits and why they are strictly enforced

compare and contrast data collection and management systems

describe key aspects of organisational risk management framework, including risk tolerance and application via limits

discuss the structure and interrelationships within the financial markets.

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