Certificate in COmmodity Deriviatves

7/29/2019 Certificate in COmmodity Deriviatves

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The Chartered Institute or Securities & Investment is

the principal provider o qualiications or the industry.

In particular the CISI has developed a wide-rangingprogramme o qualiications or individuals working in

the securities and derivatives markets. Qualiications

oered by the CISI provide irms and their sta with a

clear benchmark demonstrating they have acquired

the required knowledge to carry out their job roles

competently.

Who should study for the Certificate inCommodity Derivatives?

The Certiicate in Commodity Derivativesprovides a comprehensive proessional education

in Commodity-based Derivatives and their

underlying markets, and is suitable or specialists

engaged in analysing, trading, investment

management or compliance oversight in the

inancial services, commodity and corporate

sectors.

Regulatory Approval

FSSC Endorsed

For wholesale firms:

The Certiicate in Commodities Derivatives

eatures on the new Financial Services

Skills Council (FSSC) Recommended List

o examinations ulilling the knowledge

component o competence.

Key Features

3 a specialist qualiication or proessionals

wishing to develop their understanding o global

commodity markets and commodity derivatives

3 commodity derivatives proessionals can now

gain a single, integrated qualiication that

underscores commitment to the commodities

sector

3 developed with input rom leading UK

commodity and commodity derivatives

exchanges, accredited training providers, trade

organisations, irms and specialist trainers

3 the qualiication enhances the technical

understanding o management and compliance

sta who have responsibility or commodity and

commodity derivatives oversight

3 vital concepts and principles are addressed

including the creation, pricing, valuation, trading,

settling, margining and management o a variety

o exchange-traded and OTC commodity

derivatives, as well as providing a solid overview

o the major underlying commodity markets

3 oers global depth and breadth, with enhanced

coverage o investment applications and the

complex interactions between risk management

and global regulatory requirements

Certificate in

Commodity

Derivatives

supported by

Lie actively encourages training and urther

proessional education and is proud to work

with the Chartered Institute or Securities

& Investment to support its Certiicate in

Commodity Derivatives

Ian Dudden

Director, Commodity Derivatives

Lie, NYSE Euronext

cisi.org +44(0)20 7645 0680 [email protected]


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The certiicate in commodity derivatives provides a dedicated proessional qualiication in commodity

derivatives or traders, investors, compliance and risk management. It is a useul qualiication or

anyone wishing to pursue a career in the commodity markets. The LME ully supports it and eels it will

be o great value to market participants

Martin Abbott, Chie Executive, London Metal Exchange

Summary Syllabus

ELEMENT 1 INTRODUCTION TO COMMODITY DERIVATIVES1.1 Development o Commodity Market Derivatives

1.2 General Principles o Derivatives

ELEMENT 2 UNDERLYING COMMODITY MARKETS2.1 Physical Markets

2.2 Price Discovery in Commodity Markets

ELEMENT 3 OTHER RELATED MARKETS3.1 Other Commodity Markets

3.2 Foreign Exchange Markets

3.3 Money Markets

3.4 Equity Markets

3.5 Bond Markets

ELEMENT 4 EXCHANGE TRADED COMMODITY FUTURES

AND OPTIONS4.1 Commodity Derivative Exchanges

4.2 Trading Platorms

ELEMENT 5 PRINCIPLES OF EXCHANGE TRADED

COMMODITY FUTURES AND OPTIONS5.1 Commodity Futures Pricing

5.2 Commodity Options Pricing

5.3 Market Transparency, Trade Reporting and Monitoring

5.4 Order/Instruction Flow and Order Type

5.5 Trade Registration

ELEMENT 6 PRINCIPLES OF OTC COMMODITY DERIVATIVES6.1 Concepts and Characteristics

6.2 ISDA Documentation

6.3 Commodity Forwards and Swaps6.4 Commodity Options

6.5 Market Platorms and Trade Processing

ELEMENT 7 PRINCIPLES OF CLEARING AND MARGIN7.1 Deinition and Purpose o Clearing

7.2 Margin

ELEMENT 8 DELIVERY AND SETTLEMENT8.1 Aspects o Settlement

8.2 Exercising Commodity Options

ELEMENT 9 TRADING, HEDGING AND INVESTMENT

STRATEGIES9.1 Commodity Derivative Users

9.2 Futures Spread Trading

9.3 Options Strategies

9.4 Commodity Hedging

9.5 Basics o Hedging Options

9.6 Comparison o Exchange Traded and OTC Hedges

9.7 Structured Commodity Financing

9.8 Applications o Commodity Derivative Strategies

ELEMENT 10 SPECIAL REGULATORY REQUIREMENTS10.1 Scope o Regulation

10.2 Exchange Rules and Regulations

10.3 Principles Based Regulation

10.4 Dealing with Clients

10.5 Risk Management and Ethics

10.6 International Accounting Standards

The FOA has worked closely with the Chartered Institute or Securities & Investment on

the development o its new Certiicate in Commodity Derivatives. There is a pressing need

or anyone wishing to pursue a career in the commodities sector whether it is in trading,

investment, risk management or compliance to have a detailed understanding o these

increasingly important markets. This new qualiication and the accompanying workbook more

than meet that need and we would commend them to anyone interested in the commoditiessector.

Anthony Belchambers, Chie Executive, Futures and Options Association (FOA)

cisi.org +44(0)20 7645 0680 [email protected]


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How is the qualification delivered?

The qualiication consists o the ollowing two units.

3 Commodity Derivatives: two hour paper consisting

o 100 multiple-choice questions

3 FSA Financial Regulation/ Principles o Financial

Regulation: 1 hour paper consisting o 50 multiple

choice questions

OR a regulatory unit appropriate to the localenvironment

Candidates sitting the exam by CBT will be required to answer

up to 10% additional trial questions that will not be separately

identiied and do not contribute to the result. Candidates will

be given proportionately more time to complete the test.

Each exam can be taken at one o many computer based

test (CBT) centres worldwide. CBT is operated by CISIs

global partner Prometric. Candidates are able to book

an examination to it in with employment and othercommitments. Candidates receive their results when they

leave the test centre; the ormal certiicate

or successul candidates is issued at a later date. Over

40,000 CISI qualiications are taken every year at CBT centres

worldwide. For a list o centres please visit: cisi.org/cbt

Are there any entry requirements &exemptions?

There are no entry requirements. However, there are various

exemptions in place or the Regulation units.

For a list o exemptions, please visit cisi.org/exemptions

How do I register for the Certificate inCommodity Derivatives?

Step 1: Pay a one-o registration ee

Step 2: Book your examination/s

Step 3: Fill out a Qualiications Registration Form cisi.org/qr

Prices

Visit cisi.org/prices to ascertain current prices.

How can I study for the qualification?

Formal training or the Certiicate in Commodity Derivatives

will be available through a number o CISI Accredited Training

Providers. CISI accredits training providers that demonstrate

they deliver high-quality training and support to candidates

preparing to sit CISI examinations. To ind an ATP near you,

visit cisi.org/ATP

Self Study RouteIn addition to, or instead o, ormal training, candidates can

choose the sel-study route. CISI publishes comprehensive

workbooks or the Commodity and Regulation units. CISI

workbooks oer comprehensive coverage o every area

o the syllabus and include end o chapter summaries and

sample examination questions to ensure candidates are ully

prepared beore the examination.

Recommended study times:

Commodity Derivatives: 100 hours

FSA Financial Regulation

/Principles o Financial Regulation: 70 hours

CISI membership

Candidates receive ree student membership on completing

the qualiication registration orm. A candidate who achieves

the Certiicate in Commodity Derivatives is eligible or

Associate membership o CISI (ACSI).

To progress to ull membership (MSCI) individuals need

to have either been an associate member or 6 years or

demonstrate our years logged Continuing Proessional

Development (CPD).

To join 40,000 inancial practitioners and enjoy the beneits o

CISI membership, ind out more at: cisi.org/membership

The CISI Certificate Programme

The CISI Certiicate programme is a comprehensive

range o qualiications designed speciically to meet the

requirements o individuals working in the securities and

derivatives markets.

3 The Certiicate in Commodity Derivatives

3 The Certiicate in Securities

3 The Certiicate in Derivatives

3 The Certiicate in Financial Derivatives

3 The Certiicate in Investment Management

The Certiicate in Corporate Finance, which has its own

regulatory and technical units, is also available.


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To achieve a CISI Certificate:

+ =* Please note that the CISI recommends Principles o Financial Regulation or employees advising proessional clients and FSA Financial Regulation or

employees advising retail clients. FSA Financial Regulation oers a more detailed understanding o UK FSA regulation that relates speciically to individualretail client relationships.

Technical unit =

3 Securities or

3 Derivatives or

3 Commodities or

3 Financial Derivatives

Regulatory unit=

3 Principles

o Financial Regulation* or

3 FSA Financial Regulation

3 Local regulation paper

CISI Certificate

CERTIFICATE IN COMMODITY DERIVATIVES 09/2009 Chartered Institute or Securities & Investment

8 Eastcheap, London, EC3M 1AE

All rights reserved. No part o this publication may be reproduced, stored in

a retrieval system, or transmitted in any orm or by any means, electronic,

mechanical, photocopying, recorded or otherwise without the prior

permission o the copyright owner.

1. This column is a guide only. Within the chart, National Qualifcations Framework* and Qualifcations and Credit Framework** accredited qualifcations are marked accordingly.

2. The European Qualiications Framework is an overarching qualiications reerence ramework that links the qualiications o dierent countries together.

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4

5

6

7

wholesale wealth/retail operations specialists

qualiying

level

advanced

level

post-

graduateproessional

level

Level 3

Certiicates in:

Commodity

Derivatives*

Derivatives**

Financial

Derivatives*

Investment

Management*

Securities

Investment

Advice

Diploma**

Level 4

Diplomas in:

Derivatives**

Private Client

Advice**

Securities**

Investment

Operations

Certiicate (IOC),

ormerly known

as Investment

Administration

Qualiication

(IAQ)**

IT in Investment

Operations**

Corporate

Finance**

Advanced

Certiicates in:

Global

Securities

Operations

Operational Risk

CISI Masters

in Wealth

Management**

Diploma units:

Bonds & Fixed

Interest Markets

Financial

Derivatives

Fund

Management

Regulation &

Compliance

Diploma in

Investment

Operations

Diploma in

Investment

Compliance

The Foundation Qualiication - Introduction to Investment

International Introduction to Investment

International

Investment

Management

Certiicate

in Wealth

Management**

Certiicate

in Financial

Services or

Directors

Membership

There is a ladder

o progression

or members

o the Institute

rom

Students

to

Associates

to

Members

and ultimately to

CharteredMembers

and

Chartered

Fellows

depending on

qualifcations

gained

Combating

Financial Crime

Level 5

Private Client

Advice unit**

Islamic Finance

Qualiication**

Risk in Financial

Services

CISI Diploma

Certiicate in

Private Client

Investment

Advice &

Management**

Global

Securities Global Financial

Compliance

UK RDR qualifcation requiring gap-fll CPD.

4

5

6

7

UK

Qualifcations

Levels 1

European

Qualifcations

Framework2

oundation

The Qualifcations and Credit Framework

Documents

Certificate in COmmodity Deriviatves