Introduction

This Certification Exam is specifically designed to meet the minimum qualification needs of the capital market participants trading in financial derivatives and to ensure that they are competent to provide buying & selling services of these to stock market investors.

Objective of the Examination

This Certification Exam is specifically designed to meet the minimum qualification needs of the capital market participants trading in financial derivatives and to ensure that they are competent to provide buying & selling services of these to stock market investors.

Target Audience

This exam is by and large mandated for Brokers, Agents of Brokers, Derivative Traders and Sales Staff of Brokers and Brokerage Firms.

Syllabus Structure

    The unit is divided into elements. These are broken down into a series of learning objectives. Each learning objective begins with one of the following prefixes: know, understand, be able to calculate and also be able to apply. These words indicate the different levels of skill to be tested. Learning objectives prefixed:

    • Know: require the candidate to recall information such as facts, rules and principles
    • Understand: require the candidate to demonstrate comprehension of an issue, fact, rule or principle
    • Be able to calculate: require the candidate to be able to use formulae to perform calculations
    • Be able to apply: require the candidate to be able to apply their knowledge to a given set of circumstances in order to present a clear and detailed explanation of a situation, rule or principle

    Examination Specification

    Each examination paper is constructed from a specification that determines the weightings that will be given to each element. The specification is given below.

    It is important to note that the numbers quoted may vary slightly from examination to examination as there is some flexibility to ensure that each examination has a consistent level of difficulty. However, the number of questions tested in each element will not change by more than plus or minus 2. This comprises of 100 multiple choice questions.

    Examination Specification
    100 Multiple Choice Questions

    Element No.ElementsQuestions
    1Introduction to Derivatives15
    2Forwards: Mechanics and Valuation20
    3Interest Rate Swaps: Mechanics and Valuation10
    4Cross Currency Swaps: Mechanics and Valuation10
    5Options: Mechanics and Valuation20
    6Accounting for Derivative Transactions5
    7Regulatory Developments for Derivative Contracts5
    8Risk Management of Derivative Transactions15
    Total100

    Assessment Structure

    • This will be a two-hour examination of 100 Multiple Choice Questions (MCQs).
    • All questions will carry equal marks.
    • There will be no negative marking.

    Summary Syllabus

    To download the summary syllabus of IFMP Financial Derivatives Certification Programme, please click here.