INTRODUCTION
The IFMP Commodity Brokers’ Certification Exam covers the concepts of financial markets regulatory framework, operational aspects of commodity features, and fundamentals necessary for operating commodity futures brokerage operations in Pakistan. This course is primarily aimed towards the traders and sales staff working at the typical Commodity Brokerage Houses.
OBJECTIVE OF THE EXAMINATION
This certification course design aims to cover fundamentals necessary for operating commodity futures brokerage operations in Pakistan. It is divided in six parts and starts with introduction to futures markets, their background, basic functions and terminology in the first two chapters. Second part of the course covers regulatory framework, setup of Pakistan Mercantile Exchange, its operations and risks associated with futures trading. The primary focus of the course is to instill a working knowledge of the regulatory environment for commodity futures trading in the country as lack of this understanding of this area is seen as a primary cause of investor grievances.
TARGET AUDIENCE
The primary audiences of this course are commodity futures brokers. All staff working at commodity brokerages must take this course to better prepare themselves for client advisory and trade execution services. In addition to brokers, this course is also recommended for futures traders, asset managers, bankers, regulators, academia and anyone else interested in learning and participating in commodity futures trading.
SYLLABUS STRUCTURE
The unit is divided into elements. These are broken down into a series of learning objectives. Each learning objective begins with one of the following prefixes: know, understand, be able to calculate and also be able to apply. These words indicate the different levels of skill to be tested. Learning objectives prefixed:
- Know: Require the candidate to recall information such as facts, rules, and principles
- Understand: Require the candidate to demonstrate comprehension of an issue, fact, rule or principle.
- Be able to calculate: Require the candidate to be able to use formulae to perform calculations.
- Be able to apply: Require the candidate to be able to apply their knowledge to a given set of circumstances in order to present a clear and detailed explanation of a situation, rule or principle.
EXAMINATION SPECIFICATION
Each examination paper is constructed from a specification that determines the weightings that will be given to each element. The specification is given below.
It is important to note that the numbers quoted may vary slightly from examination to examination as there is some flexibility to ensure that each examination has a consistent level of difficulty.
However, the number of questions tested in each element will not change by more than plus or minus 2. This comprises of 100 multiple choice questions.
| Element No. | Elements | Questions |
|---|---|---|
| 1 | Introduction to Commodity Futures Markets | 20 |
| 2 | Mechanics and Fundamentals of Futures Markets | 15 |
| 3 | Pakistan Mercantile Exchange | 15 |
| 4 | Regulatory Framework for Futures Trading in Pakistan | 20 |
| 5 | Trading Commodity Futures at PMEX | 10 |
| 6 | Risks Associated with Futures Trading | 20 |
| Total Marks | 100 |
ASSESSMENT STRUCTURE
- This will be a 150 minutes examination of 100 Multiple Choice Questions (MCQs).
- All questions will carry equal marks.
- There will be no negative marking.
SUMMARY SYLLABUS
To download the summary syllabus of Commodity Brokers’ Certification Exam, please click here.