It's a futures learning curve for investors

MUMBAI: Investors and corporates interested in understanding how the commodity derivatives market functions now have an opportunity at their doorstep.

Multi Commodity Exchange of India (MCX) has tied up with the Institute of Financial Management (IFM), Washington, to conduct three 2-day programmes on ‘Futures and Options on Futures’ in Mumbai, Bangalore and Delhi between June 1-7.

The module, besides giving candidates an overview of the market, prepares them to take the Series 3 Examination (National Commodities Futures exam) of the National Futures Association (NFA), a self-regulatory body for the US futures industry. NFA monitors more than 4,200 firms and 55,000 associates globally.

The test is going to be conducted for the first time in India. Earlier, candidates had to travel all the way to Singapore to write the exam. These programmes are basically meant for professionals dealing with financial and commodity derivatives in corporates, banks, broking firms, stock and commodity exchanges, foreign banks, FIIs and BPOs.

The exam is required for individuals who offer or conduct business in futures or options at a futures commission merchant, or a broker or whosoever supervises any such person. It is also required for persons associated with commodity trading. The Futures Industry Association of US, a non-profit educational foundation, will be instrumental in bringing international courses on futures and options to India.

The whole programme covers topics on industry and technical information (market fundamentals of futures margins, option premiums, hedging spread trading applications and techniques), regulations and regulatory framework and compliance in depth. The IFM supplies study material as well as a web-based tutorial system to help students.