NISM Series-I (Currency Derivatives Certification Examination): Latest Syllabus

NISM Series-I: Currency Derivatives Certification Examination | Latest Syllabus | How to Pass Exam | Mock Test Series

In this post, we’ve covered everything you need to know about the NISM Series-I Currency Derivatives Certification Examination, including the Syllabus, Registration and Fees, Marking, Duration, Validity, and more.

This examination aims to establish a common minimal knowledge benchmark for those working in the Currency Derivatives market segment, in order to improve better understanding of currency markets and exchange-traded currency futures products, as well as operational process efficiency and risk management.

Objectives of the Exam:

The candidates should do the following after passing the exam:

  • Know the basics of currency markets and specifically Exchange Traded Currency Derivatives markets. This is the addition.
  • Understand the trading, clearing and settlement mechanisms related to Currency Derivatives markets and basic investment strategies that use currency futures and options products.
  • Know the regulatory environment in which the Currency Derivatives markets operate in India.

Examination Pattern:

There will be a total of 100 questions with a maximum mark of 100 in the examination. The duration of the test is two hours, and the qualifying mark (%) is 60. The fee for this certification exam is Rs.1500. A quarter of the marks assigned to the question will be deducted as negative marking. This certification course has a three-year validity period.

Examination Syllabus:

The syllabus for the NISM Certification Exam differs depending on whatever NISM exam participants choose. Here is the syllabus for the NISM Series-I Currency Derivatives Certification Examination.

Introduction to currency markets 12%
Foreign exchange derivatives 5%
Exchange traded currency futures 6%
Strategies using currency futures 24%
Trading in currency futures 6%
Clearing, Settlement and Risk Management in current in futures 16%
Exchange traded currency options 15%
Accounting and Taxation 5%
Regulatory framework for currency derivatives 6%
Codes of conduct and Investor protection measures 5%


NISM-Series-I Currency Derivatives Online Test Series

I.Introduction to Currency Markets

  • History of foreign exchange markets
  • Major currency pairs
  • Overview of international currency markets
  • Basics and Peculiarities of currency markets in India
  • Settlement or value date
  • Over-the-Counter (OTC) forward market
  • Exchange rate arithmetic- cross rate
  • Impact of market economics on currency prices
  • Economic indicators

II.Foreign Exchange Derivatives

  • Evolution of derivatives
  • Derivative products and features
  • Growth drivers of derivatives
  • Market players in the foreign exchange market
  • Key economic functions of derivatives
  • Exchange-Traded Vs. OTC derivatives

III. Exchange Traded Currency Futures

  • Currency futures
  • Spot price
  • Futures price
  • Contract cycle
  • Value date/Final settlement date
  • Expiry date
  • Contract size
  • Initial margin
  • Marking-to-market
  • Rationale behind currency futures
  • Standard items in a futures contract
  • Introduction of currency futures in India
  • Futures and forward contracts
  • Advantages of futures contracts
  • Limitations of futures contracts
  • Interest rate parity and pricing of currency futures

IV.Strategies Using Currency Futures

  • Role of speculation in futures markets
  • Long position in futures
  • Short position in futures
  • Hedging using currency futures
  • Types of hedgers
  • Size of the hedging position
  • Trading spreads using currency futures
  • Concept of arbitrage
  • Use of arbitrage in currency futures markets
  • Arbitrage opportunities under various conditions

V. Trading in Currency Futures

  • Contract specification for currency futures
  • Trading parameters
  • Tenors of futures contract
  • Expiry date
  • Settlement price
  • Entities in the trading system
  • Types of orders
  • Concept of Mark-to-Market (MTM)
  • Position limits
  • Allowable open position limits for members trading in currency futures
  • Monitoring and enforcement of position limits in the currency futures market
  • Surveillance systems and procedures of exchanges

VI. Clearing, Settlement and Risk Management in Currency Futures

  • Clearing entities
  • Clearing mechanism
  • Open positions and obligations of clearing members
  • Settlement mechanism
  • MTM settlement
  • Final settlement
  • Risk management measures
  • Concept of margin requirements
  • Initial margin
  • Portfolio based margin
  • Calendar spread margin
  • Extreme loss margin
  • Liquid net worth
  • Liquid assets
  • Real time computation
  • Process of margin collection by Clearing Corporations

VII. Exchange Traded Currency Options

  • Options
  • Call and put option
  • Bought and sold option
  • Option premium
  • Futures and options
  • European vs. American option
  • Moneyness of an option
  • Option pricing and option Greeks
  • Option pricing methodology
  • Option pay offs
  • Option strategies
  • Practical application of currency options
  • Clearing, settlement and risk management for currency options

VIII. Accounting and Taxation

  • Accounting treatment for derivative contracts
  • Taxation of derivative transaction in securities
  • Tax treatment of profit/loss on derivative transaction in securities

IX. Regulatory Framework for Currency Derivatives

  • Features of Securities Contracts (Regulation) Act, 1956 [SC(R)A]
  • Features of Securities and Exchange Board of India Act, 1992
  • Recommendations of the RBI-SEBI Standing Technical Committee on Exchange Traded Currency and Interest Rate Derivatives
  • Provisions of Foreign Exchange Management Act, 1999
  • Salient features of RBI notification ‘Currency Futures (Reserve Bank) Directions, 2008
  • Salient features of RBI Circular, ‘Guidelines on trading of Currency Futures in Recognized Stock / New Exchanges’
  • Salient features of SEBI Regulations for Currency Derivatives Exchanges
  • Regulatory framework for clearing corporations
  • Governing Council of the Exchange and Clearing Corporation
  • Eligibility criteria for membership of currency derivatives exchanges

X. Codes of Conduct and Investor Protection Measures

  • Features of SEBI Codes of Conduct for brokers
  • Features of SEBI Codes of Conduct for sub-Brokers
  • Features of Codes of Conduct specific to Exchange Traded Currency Derivatives Segment
  • Grievance redressal mechanism for investors
  • Nature of complaints considered by exchanges
  • Arbitration mechanism at exchanges

How to Pass Examination:

As you already know Mock Tests or Online Test Series are very essential for passing any competitive examination. So, here in this article, we have come up with the online test series for NISM Series-I Currency Derivatives Certification Examination. Candidates who want to get NISM Series-I Currency Derivatives Certification can take our NISM Series-I Currency Derivatives Certification Examination Online Test Series, which contains the most important and frequently asked questions in the exam. In this NISM Series-I Currency Derivatives Certification Examination Online Test Series, candidates will also be given a full explanation of each question. This NISM Series-I Currency Derivatives Certification Examination Online Test Series is prepared by working professionals. This NISM Series-I Currency Derivatives Certification Examination Online Test Series is a good opportunity for all aspirants.

 NISM Series I: Currency Derivatives Certification Examination Online Test Series Includes:

  • 800 Total Questions
  • Detailed Explanation of each question
  • 100 Question & 120 Minutes for each mock
  • Based on Latest Pattern and Previous Year Paper

NISM Series I: Currency Derivatives Certification Examination Online Test Series Salient Feature:

  • Actual Exam Pattern Based Test Series
  • Language: English Medium
  • 100% Success Rate
  • Validity: 3 Months
  • Access on Web and APP 24/7

NISM Certification Courses : Eligibility , Scope , Validity & Complete Guide

NISM-Series-I Currency Derivatives Online Test Series


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