Commodity Derivatives

The Securities and Investment Institute Level 3 Certificates in Investments are benchmark competency exams for individuals working in regulated firms who will be involved in managing investments on behalf of clients, giving advice on investments or selling investments to, or on behalf of, clients.There are 6 different certificates composed of two units for delegates working in wholesale and three units if delegates work in a retail focussed role.The certificates are awarded to candidates who pass one of the regulatory units: FSA Financial Regulation (retail) or Principles of Financial Regulation (wholesale), plus the required technical unit(s).The certificates are:Certificate in SecuritiesFor candidates interested in advising and dealing in securities.Certificate in DerivativesFor candidates interested in advising and dealing in derivatives, including commodity derivatives.Certificate in Financial DerivativesFor candidates interested in advising and dealing in financial derivatives.Certificate in Corporate FinanceFor candidates interested in advising on investments in the course of corporate finance business only.Certificate in Investment ManagementFor candidates interested in managing investments.Certificate in Commodity DerivativesFor candidates interested in advising and dealing in commodity derivatives.Click herefor more information on the different units.


Unit 1 - FSA Financial Regulation
This paper is the regulatory unit for delegates taking retail focussed certificates. It tests your understanding of the regulations and legislation that underpin the financial markets and the conduct of investment business. It covers:

• The regulatory environment in which the UK securities industry operates
• The relevance of the Financial Services and Markets Act 2000 and associated legislation and regulations
• The FSA's Conduct of Business Rules
• The complaints and redress procedures

Unit 6 - Principles of Financial Regulation
The PFR paper is the regulatory unit for delegates taking wholesale focussed certificates, generally those engaged in front office and operational and settlement roles, whose work is wholesale focussed. The syllabus concentrates on general principles of financial regulation as opposed to the more in-depth coverage of the retail focussed Unit 1. It covers:

• The regulatory environment in which the UK securities industry operates
• The relevance of the Financial Services and Markets Act 2000 and associated legislation and regulations
• The FSA's Conduct of Business Rules more relevant to wholesale investment

Unit 2 - Securities
The securities paper is designed for delegates advising and/or dealing in securities on behalf of clients. The aim of the examination is to ensure that candidates have a basic knowledge of market infrastructure, operation, regulation and practice. It covers:

• The different securities traded in the financial markets
• How they are traded
• Primary and secondary markets
• The analysis of accounts
• The risk and reward associated with investing in various asset classes

Unit 3 - Derivatives
The derivatives unit is suitable for individuals advising on investments and dealing with clients in financial and commodity derivatives. This unit gives an understanding of:

• The derivatives markets
• The underlying markets and the principles associated with them
• Trading and investment strategies

Unit 5 - Investment Management
This unit gives you a good understanding of the foundations of investment management. It covers accounting, economics and financial mathematics, as well as the various asset classes, investment analysis, portfolio management and performance measurement. Together with Unit 1 - FSA Financial Regulation or Unit 6 - Principles in Financial Regulation this unit forms the Certificate in Investment Management. 7city offer training for this unit on an in house basis only.


Unit 7 - Financial Derivatives
This unit is suitable for those advising and/or dealing in financial derivatives on behalf of professional and retail clients. The aim of this unit is to provide you with a basic knowledge of financial derivatives products and markets, as well as trading, settlement, investment strategies and regulation. The examination covers:

• The practices and principles of the financial derivatives markets
• Derivatives, futures and options trading
• The principles of exchange traded futures and options
• OTC derivatives
• Clearing and margin
• Trading, hedging and investment strategies
• Special regulatory requirements

Unit 9 Commodity Derivatives
This unit gives you an understanding of the commodity derivatives markets, the underlying markets and the principles associated with them. It also covers trading and investment strategies.