1.    What sectors do you trade? 2.    What countries and regions do you trade? 3.    What products do you trade (equities, over-the counter (OTC) foreign exchange (FX), fixed income, etc.)? 4.    If you trade OTC, do ISDA, FX Netting agreements, and so on exist? 5.    How many accounts do you trade? 6.    Define your assets under management. 7.    Are you able to produce a historical track record? 8.    Does your strategy require a minimum amount of money under management in order for you to trade your entire portfolio? 9.    Is your process capacity constrained? Can you estimate at what point it might be?   10.   Describe the process by which you know that you are trading in accordance with client guidelines. 11.   Do you believe that your process is volume sensitive in terms of the number of accounts under management? If so, discuss. 12.   Describe how your process generates profits. That is, what is the source of your excess returns (e.g., superior stock selection, superior quantitative modeling, superior fundamental research, etc.)? 13.   Define the list of your benchmarks. Are all of them easily calculated or are some nonstandard? For nonstandard benchmarks, describe how you manage risk in your portfolio. Would you prefer standard benchmarks if that option was available to you? 14.   What risk system do you use to measure risk and build portfolios? 15.   Have you found weaknesses or problems with these systems from time to time? To the extent that these systems can be inadequate, how do you compensate? 16.   Define the following on a daily, monthly, quarterly, and annual basis both in terms of active weights vis a vis a benchmark as well as in terms of marginal contribution to risk: maximum exposure by security; maximum exposure by sector; maximum exposure by country; maximum exposure at the portfolio level. a. For each of the above, define exposure at the one and three standard devia tion levels. b. When will you liquidate a position? Does this answer correlate to the an swers given at (a) above? c. At what point are losses vis a vis the benchmark so large that you would conclude that your process is no longer working? 17.   Describe those environments that are harmful for you. 18.   Describe those environments that are favorable for you. 19.   Is any part of your book vulnerable to market illiquidity? That is, does the genre of products you trade have evidence of becoming much less illiquid (based on historical observation)?