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NISM Series IV: Interest Rates Derivatives

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NISM Series IV: Interest Rates Derivatives online tutorial

The NISM Series IV: Interest Rates Derivatives exam sets a minimum knowledge benchmark for the people who work in the Interest Rate Derivatives market sector. It provides better understanding of fixed-income securities markets and interest rate derivative products, rules, regulations along with the risks that are associated with these products accompanied by the exchange mechanisms of clearing and settlement.

Target groups:

Well, the NISM Series IV: Interest Rates Derivatives exam is recommended for the following people:

  • Students
  • Industry professionals
  • Approved users and the sales personnel of ‘Trading Members’ who have been registered in the Currency Derivatives Sector of any recognized stock exchange and trading in Interest Rate Derivatives
  • Individuals who are interested in working in Interest Rate Derivatives market
Benefits of the exam:

Passing the NISM Series IV: Interest Rates Derivatives examination will enable you to-

  • Understand the analytical framework that is required for Bond Futures market in India along with involved trading and hedging strategies.
  • Know the fundamentals of fixed-income securities markets and specifically interest rate derivative markets in the developed world.
  • Understand the clearing, settlement and risk management along with the operational mechanism involved in interest rate derivatives markets.
  • Know about the regulatory environment In India in which the interest rate derivatives markets operate.

Scheduling the exam

So, you can apply for the exam following the steps given below:

  • Register with the NISM Portal
  • Use your email address and password to login
  • Check availability of seats
  • Schedule the test or enroll online
  • Make payment using Credit Card / Debit Card/ Net Banking
  • Download the Admit Card
  • Download the Study material
  • Access Exam Results

Special Accommodation Policy

  • If you require special accommodation while appearing for NISM Series IV: Interest Rates Derivatives exam then you are required to inform NISM regarding the same.
  • Therefore, you have to send the Special Accommodation form to NISM at least 30 days in advance in order to get assistance for special accommodations.
  • You will be given the approval/denial for Special Accommodation by NISM after assessing its need at its sole discretion.

Exam Details

Now, another very important thing to note is the pattern of exam, number of questions asked, time allotted and other minor details. So, we have mentioned the important details of the NISM Series IV: Interest Rates Derivatives exam as follows:

  • Type of questions-Multiple-choice questions
  • No. of questions-100
  • Time allotted-2hrs
  • Passing score-60%
  • Fee-Rs. 1500+

For more details and any queries, visit the NISM Series IV: Interest Rates Derivatives Exam FAQs

NISM Series IV: Interest Rates Derivatives FAQs

NISM Series IV: Interest Rates Derivatives Exam Course Outline

Moreover, the syllabus of exam has been categorized in various sections and subsections. So, let’s look into the various domains of the exam as follows:

DOMAIN 1: Fixed-income or Debt Securities – Introduction
  • Financial Markets: Overview
  • Debt/ Fixed-income Securities : Introduction
  • Debt/ Fixed-income Securities : Classification
  • Fixed-income Securities vs. Fixed-return Securities
  • Debt Securities vs. Equity Securities
  • Relative Size of Debt and Equity Markets: Globally and in India
DOMAIN 2: Interest Rate – Introduction
  • Concept of Interest Rate
  • Risk-free Interest Rate vs. Risky Rate
  • Term Structure of Rates: Shapes
  • Term Structure of Rates: Shifts
  • Conversion of Rate into Amount
  • Accrued Interest
DOMAIN 3: Return and Risk Measures for Debt Securities
  • Return Measure: Spot Rate
  • Coupon, Current Yield and Yield-To-Maturity
  • Spot rate, Bond price and YTM
  • Risk Measures
DOMAIN 4: Interest Rate Derivatives
  • Derivatives: Definition and Economic Role
  • Interest Rate Derivatives
  • Over-The-Counter (OTC) vs. Exchange-Traded Derivatives
  • Derivatives Market in India
DOMAIN 5: Contract Specification for Interest Rate Derivatives
  • Underlying Assets of Permissible Interest Rate Derivative Contracts in India
  • Market Lot / Contract Amount
  • Contract Months, Expiry Dates and Last Trading Day of Exchange Traded Derivatives
  • Price Quotation and Tick
  • Daily Settlement Price
  • Final Settlement Price
  • Delivery Aspects of Interest Rate Derivatives Contracts
DOMAIN 6: Trading, Clearing, Settlement and Risk Management
  • Operational Guidelines of Exchanges
  • Order Types and Execution
  • Spread Orders
  • Margining and Mark-To-Market (MTM)
  • Clearing and Settlement
  • Procedure for Delivery
DOMAIN 7: Regulations and compliance
  • Role of Various Regulators in Bond and Interest Rate Derivatives Market
  • Restrictions and Limits Applicable to Resident and Non-resident Investors
  • List the Regulatory Reporting Requirements
  • Accounting Aspects of Interest Rate Derivatives
DOMAIN 8: Trading and Hedging
  • Speculative / Trading Strategies
  • Hedging Strategies
  • Basis Risk, Yield Curve Spread Risk and Market Liquidity Risk

Preparation guide for the NISM Series IV: Interest Rates Derivatives Exam

It’s totally apt to say that the best preparation for tomorrow is the right use of resources today. For your convenience, we have compiled different study resources and series of preparation steps that can be followed to ace this exam.

NISM Series IV: Interest Rates Derivatives preparation guide

1. Go through the topics of exam

First of all, familiarize yourself with all the topics and subtopics of exam. This will help you get a fair idea about the exam and distribute your learning preparation accordingly. Remember, it’s not just the topics but the deep knowledge and practical application of things that will help you ace the exam. So, analyze the syllabus well.

2. Explore the details of exam

Another important aspect before starting with studying is to know all about the pattern of exam including details about the type and number of questions and also the time allotted. This will help you strategize your learning technique and will also help you manage your time while doing the exam.

3. Study resources

  • NISM provides its workbooks for studying. You can order these workbooks online through Taxmann Publications Private Ltd.
  • You can look for model test papers at NISM. This will help you in getting familiar with the pattern of exam and would enable you to prepare for the exam better.
  • Alongside, you can also go for online trainings provided by different platforms. This will help you in learning the basics at at greater pace. Moreover, self-study can also do the needful.

4. Join study groups

Well, joining study groups and communities can also prove to be of great help. It is a platform that connect professionals and beginners which in a way helps you get your queries solved and also allows you to have healthy discussions with peers. Hence, joining these groups will help you stay updated about any changes that might come.

5. Practice tests

Lastly, the most important step of preparation is practicing questions. This helps you not only evaluate your level of preparation but also helps you boost your confidence by attempting challenging questions. So, you can find various sample papers on the internet, the practice tests that we offer are definitely reliable. Here, we provide unique sets of professionally designed questions that are of great help in polishing your knowledge. Alongside, Testpreptraining.com also allows you to create your own practice tests.

NISM Series IV: Interest Rates Derivatives practice tests
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