Who are employees of securities dealers who engage in transactions in the name and under responsibility of a participant for its own or client's account?

• A. Market makers
• B. Arbitrageurs
• C. Traders
• D. Chinese walls

Answer: (C)

The key idea is the role of the person who actually executes buy and sell orders on behalf of the firm or its clients. Those employees sit on the trading desk and transact in the firm’s name or for client accounts, taking responsibility for the resulting trades. This is precisely what a trader does—handling the day-to-day execution of orders for the dealer and its clients.

Market makers focus on providing liquidity by quoting bid and ask prices, which is a different function from executing each individual trade. Arbitrageurs are a specialized type of trader who seek profit from price differences across markets, not the general job of handling all client or firm orders. Chinese walls are internal information barriers, not a job role.

So, the person described—the employee who executes transactions for the firm or its clients—is best understood as a trader.