NISM Series XIII Common Derivatives Certification Exam Notes
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Long-Term Hedging:Long-dated exposures are difficult to hedge as ETCD tenors are shorter.
Entities in the Trading System: Stock Exchanges, Clearing Corporations, Trading Members, Authorized Persons, Clearing Members, and Investors are the key entities enabling Exchange Traded Currency Derivatives.
Stock Exchanges: Provide a nationwide trading platform for various securities, set rules and regulations, ensure investor protection, and monitor compliance.
Clearing Corporations: Handle clearing, settlement, and risk management, providing settlement guarantees for trades executed on the Exchange.
Trading Member: Acts as an intermediary between the investor and the Exchange; must be registered and certified to access the trading system.
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