Trading capacity is:

Trading capacity is:

• A. Mandatory
• B. Optional
• C. Not used
• D. Only for private orders

Answer: (A)

Trading capacity is the role you are acting in when placing an order—whether you are trading for your own account or on behalf of a client. On SIX Swiss markets, this information must be disclosed on every order. It is mandatory because it fixes who bears the risk and who is liable for the trade, which guides clearing, settlement, and compliance checks and prevents misrepresentation of orders. If capacity isn’t specified, it would blur the distinction between client orders and house trades, complicate risk management, and hinder regulatory reporting. Therefore, trading capacity must be stated; it isn’t optional and isn’t limited to private orders.

Trading capacity is the role you are acting in when placing an order—whether you are trading for your own account or on behalf of a client. On SIX Swiss markets, this information must be disclosed on every order. It is mandatory because it fixes who bears the risk and who is liable for the trade, which guides clearing, settlement, and compliance checks and prevents misrepresentation of orders. If capacity isn’t specified, it would blur the distinction between client orders and house trades, complicate risk management, and hinder regulatory reporting. Therefore, trading capacity must be stated; it isn’t optional and isn’t limited to private orders.