Which of the following is a Type 5 regulated activity?

• A. Advising on futures
• B. Providing automated trading services
• C. Asset Management
• D. Providing credit rating services

Answer: (B)

The main idea here is that Type 5 covers automated trading services—providing a service that automatically places or routes orders for clients using algorithms, with limited manual intervention.

This is why the option describing automated trading services is the best fit. Offering such an automated system is a distinct regulatory activity because it directly engages in execution and routing of trades via algorithms, which carries specific market and operational risks that licensing aims to address.

Advising on futures, asset management, and providing credit rating services fall under different regulated activities tailored to those functions, not automated execution. So they aren’t Type 5.