Self-Match Prevention is labeled as which term?

Self-Match Prevention is labeled as which term?

• A. Principal trades
• B. P-Principal transactions
• C. P-Trade-Principal
• D. P-Order-Protection

Answer: (B)

Self-match prevention is about avoiding trades where a firm ends up trading against itself, i.e., the firm acting as both broker and counterparty. In SIX Swiss practice, such activities are categorized as principal transactions, and they’re labeled with a P- prefix to denote principal. That makes the term P-Principal transactions the correct label. Other options don’t fit because they don’t match this established designation for trades executed for the firm’s own account or the concept of preventing self-trades.

Self-match prevention is about avoiding trades where a firm ends up trading against itself, i.e., the firm acting as both broker and counterparty. In SIX Swiss practice, such activities are categorized as principal transactions, and they’re labeled with a P- prefix to denote principal. That makes the term P-Principal transactions the correct label. Other options don’t fit because they don’t match this established designation for trades executed for the firm’s own account or the concept of preventing self-trades.