Eurex Trader Practice Exam

The management board of the exchange holds the authority to determine the mistrade ranges. This is because the management board is responsible for overseeing the exchange's operations and ensuring that market processes function smoothly and fairly. By establishing mistrade ranges, they help maintain market integrity and protect investors from significant erroneous trades that could disrupt the market.

Mistrade ranges are thresholds beyond which a trade is deemed to be an error, and they assist in mitigating the impact of mistakes that could lead to volatile price movements. The management board bases these ranges on various factors, including market conditions, trading volumes, and historical data, allowing them to set rules that reflect current market dynamics.

In contrast, regulatory bodies of trade primarily set overarching rules and regulations but do not typically specify the operational parameters for individual exchanges. Market analysts provide insights and analysis that may inform the board's decisions but lack the authority to set official parameters. Individual traders lack the collective agreement necessary for establishing mistrade ranges, as this requires a structured decision-making process from the governing body of the exchange.