Commodity Derivatives Certification Examination
Introduction to Commodity Markets
- History of Commodity Trading
- Spot and Derivatives Trading in Commodities
- Major Commodities Traded in Derivatives Exchanges in India
- Participants in Commodity Derivatives Markets
- Commodities Trading vis-à-vis Trading in Other Financial Assets
- Commodity Markets Ecosystem
- Factors Impacting the Commodity Prices
- Commodity Options and Index Futures
Commodity Futures
- Introduction to Futures
- Distinction between Forwards and Futures
- Cost-of-Carry
- Convergence
- Fair Value of a Futures Contract
- Convenience Yield
- Commodity Futures and Commodity Forwards
- Pay-off Profile for Futures Contracts
- Spot Price Polling and Final Settlement Price of Futures
Commodity Options
- Introduction to Options
- Option Terminology
- Pay-off Profiles of Options Contracts
- Determinants of Option Premium
- Options on Commodity Futures
- Options on Goods
Commodity Indices
- Commodity Index
- Index Construction and its Constituents
- Trading in Index Futures
- Uses of Index Futures
Uses of Commodity Derivatives
- Hedging
- Long Hedge and Short Hedge Strategies Using Futures
- Speculation
- Arbitrage
- Spread Trading
- Basis
- Option Trading Strategies
- Hedging Strategies Disclosure Norms
Trading Mechanism
- Membership on Exchanges Having Commodity Derivatives Segment
- Trading System in the Exchanges
- Selection Criteria of Commodities for Trading on Derivatives Exchanges
- Contract Specifications for Commodity Derivatives Contracts
- Profit/Loss per Contract for a Change of One Tick
- Order Types and Conditions
- Tracking Commodity Futures and Options Prices
- Participants in Commodity Derivatives
- Disclosures by Exchanges
Clearing Settlement and Risk Management of Commodity Derivatives
- Clearing Corporation
- Clearing and Settlement
- Delivery Process
- Entities Involved in the Clearing and Settlement Process
- Premium/Discount
- Penalty for Delivery Default
- Deliveries in the Case of Physical Delivery
- Risk Management for Exchange Traded Commodity Derivatives Markets
- Position Limits and Computation of Open Position
- Salient Features of Risk Containment Measures
- Margining Mechanism
- Additional Procedures for Other Market Segments
- Raising of Bill for Delivery
Accounting and Taxation
- Important Accounting Aspects related to Trading in Commodity Derivatives
- Guidance Note Issued by ICAI on Accounting Treatment of Derivative Transactions
- Accounting of Options Contracts
- Important Tax Aspects Related to Trading in Commodity Derivatives
Legal & Regulatory Environment of Commodity Derivatives
- Regulatory Structure of Commodities Market
- Securities Contracts (Regulation) Act, 1956
- Securities and Exchange Board of India Act, 1992
- Other Regulatory Norms to Encourage Commodity Derivatives
- SEBI’s Code of Conduct for Brokers
- Risk Disclosure to Client and KYC
- Investors Grievance Redressal Mechanism
- Rights and Obligations of Members and Clients
- Additional Do’s and Don’ts for Clients / Investors in Commodity Derivatives
- Fees (Rs.) – 1500+
- Test Duration(in minutes) – 120
- No. of Questions – 100
- Maximum Marks – 100
- Pass Marks*(%) – 60
- Certificate Validity(in years) – 3
