Currency Derivatives

  1. History of foreign exchange markets
  2. Major currency pairs
  3. Overview of international currency markets
  4. Basics and Peculiarities of currency markets in India
  5. Settlement or value date
  6. Over-the-Counter (OTC) forward market
  7. Exchange rate arithmetic- cross rate
  8. Impact of market economics on currency prices
  9. Economic indicators
  1. Evolution of derivatives
  2. Derivative products and features
  3. Growth drivers of derivatives
  4. Market players in the foreign exchange market
  5. Key economic functions of derivatives
  6. Exchange-Traded Vs. OTC derivatives
  1. Currency futures
  2. Spot price
  3. Futures price
  4. Contract cycle
  5. Value date/Final settlement date
  6. Expiry date
  7. Contract size
  8. Initial margin
  9. Marking-to-market
  10. Rationale behind currency futures
  11. Standard items in a futures contract
  12. Introduction of currency futures in India
  13. Futures and forward contracts
  14. Advantages of futures contracts
  15. Limitations of futures contracts
  16. Interest rate parity and pricing of currency futures
  1. Role of speculation in futures markets
  2. Long position in futures
  3. Short position in futures
  4. Hedging using currency futures
  5. Types of hedgers
  6. Size of the hedging position
  7. Trading spreads using currency futures
  8. Concept of arbitrage
  9. Use of arbitrage in currency futures markets
  10. Arbitrage opportunities under various conditions
  1. Contract specification for currency futures
  2. Trading parameters
  3. Tenors of futures contract
  4. Expiry date
  5. Settlement price
  6. Entities in the trading system
  7. Types of orders
  8. Concept of Mark-to-Market (MTM)
  9. Position limits
  10. Allowable open position limits for members trading in currency futures
  11. Monitoring and enforcement of position limits in the currency futures market
  12. Surveillance systems and procedures of exchanges
  1. Clearing entitie 
  2. Clearing mechanism
  3. Open positions and obligations of clearing members
  4. Settlement mechanism
  1. Options
  2. Call and put option
  3. Bought and sold option
  4. Option premium
  5. Futures and options
  6. European vs. American option
  7. Moneyness of an option
  8. Option pricing and option Greeks
  9. Option pricing methodology
  10. Black-Scholes model
  11. Binomial pricing model
  12. Option pay offs
  13. Option strategies
  14. Practical application of currency options
  15. Clearing, settlement and risk management for currency options
  1. Accounting treatment for derivative contracts
  2. Taxation of derivative transaction in securities
  3. Tax treatment of profit/loss on derivative transaction in securities
  1. Features of Securities Contracts (Regulation) Act, 1956 [SC(R)A]
  2. Features of Securities and Exchange Board of India Act, 1992
  3. Recommendations of the RBI-SEBI Standing Technical Committee on Exchange Traded Currency and Interest Rate Derivatives
  4. Provisions of Foreign Exchange Management Act, 1999
  5. Salient features of RBI notification ‘Currency Futures (Reserve Bank) Directions, 2008
  6. Salient features of RBI Circular, ‘Guidelines on trading of Currency Futures in Recognized Stock / New Exchanges’
  7. Salient features of SEBI Regulations for Currency Derivatives Exchanges
  8. Regulatory framework for clearing corporations
  9. Governing Council of the Exchange and Clearing Corporation
  10. Eligibility criteria for membership of currency derivatives exchanges
  1. Features of SEBI Codes of Conduct for brokers
  2. Features of SEBI Codes of Conduct for sub-Brokers
  3. Features of Codes of Conduct specific to Exchange Traded Currency Derivatives Segment
  4. Grievance redressal mechanism for investors
  5. Nature of complaints considered by exchanges
  6. Arbitration mechanism at exchanges

NISM-Series-I: Currency Derivatives Certification Examination

Revised Examination of NISM Series-I: Currency Derivatives Certification Examination w.e.f. May 7, 2018

The examination aims to create a common minimum knowledge benchmark for persons working in the Currency Derivatives market segment, in order to provide a wider understanding of currency markets and exchange traded currency future products, better quality investor service, operational process efficiency and risk controls.
Currency Derivatives is mandatory in companies. If a broking house or sub-broker wants to start a terminal for derivatives or currency they require a candidate who had passed the SEBI certification for currency derivatives module respectively.

Assessment Structure:
The NISM-Series-I: CD Examination will be a 100 marks examination to be completed in 2 hours. It will have 100 questions of 1 mark each. There will be negative marking of 25% of the marks assigned to a question. The passing score for the examination is 60%.
This examination is also available in Hindi and Gujarati languages.

Test Details:
Name of Examination: NISM-Series-I: Currency Derivatives Certification Examination

Fees (Rs.) Test Duration (In Minutes) No. of Questions Max. Marks Pass Marks* (%) Certificate Validity (In Years)

* Negative marking – 25% of the marks assigned to the question.


NISM Currency Exam (CD) Syllabus Weightages (Syllabus wise question %)
Unit 1: Introduction to currency markets
Unit 2: Foreign exchange derivatives
Unit 3: Exchange traded currency futures
Unit 4: Strategies using currency futures
Unit 5: Trading in currency futures
Unit 6: Clearing, Settlement & Risk Management in currency futures
Unit 7: Exchange traded currency options
Unit 8: Accounting and Taxation
Unit: 9: Regulatory framework for currency derivatives
Units: 10: Codes of conduct and Investor protection measures

Programme Fees: Rs.10000+GST

Note : Examination fee of SEBI certification exam is extra.

Course Duration: 1 Month