Under which circumstances are banks allowed to park positions with a counterparty?:
A) It is forbidden to park positions.
B) In conditions of exceptional volatility.
C) If the two counterparties agree.
D) If approved by senior management.

Question

Quizplus · Accepted Answer

Parking positions with a counterparty is generally considered a form of market manipulation and is typically forbidden under financial regulations.

Under Which Circumstances Are Banks Allowed to Park Positions with a Counterparty