**POSTPONED**Module 16: Rules And Regulations Of Derivatives

Learning Outcomes

Candidates are expected to have good knowledge, understanding and ability to apply in the following areas:

1. Nature of derivatives
2. Structure and operation of the Malaysian futures and options markets and describe the products traded in these markets
3. Significance of the futures and options markets to the development of Malaysia’s capital market
4. Role of the derivatives exchange
5. Role of clearing house in clearing and processing futures and options trades and managing risk
6. Intermediaries in the futures and options market and users of these markets
7. Regulations and structural framework of the Malaysian futures and options market and the regulatory and legal obligations of the various market participants
8. Terms used in the derivatives market
9. Bursa Malaysia Derivatives Berhad’s participantship structure and the rights and obligations attaching to each participantship
10. Offences under the Rules of Bursa Malaysia Derivatives Berhad and Capital Markets and Services Act 2007
11. Enforcement, arbitration and appeal procedures for breaches of the Rules of Bursa Malaysia Derivatives Berhad
12. General conduct of Participants
13. Responsibilities of Participants when dealing with clients
14. Need and operation of clients’ segregated accounts
15. Discretionary account
16. Supervision within a Trading Participant
17. Clients’ margin and margin payment
18. Role of Participants in dealing with clients’ complaints
19. Trading in the market and the rules on trading
20. Bursa Malaysia Derivatives Berhad’s trading days
21. Types of orders and order matching mechanisms
22. Role of Participants and clients in confirmation of trade
23. Ways for Participants to trade on other Exchanges
24. Suspension of Trading Participants and suspension of trading
25. Emergency rules
26. Contract specifications of stock options, stock index futures, option on stock index futures, single stock futures, three-month KLIBOR futures, all the crude palm oil futures, crude palm kernel oil futures, option on crude palm oil futures, all the MGS futures contracts, gold futures contract, USD denominated refined, bleached and deodorized palm olein futures contract and tin futures contract.

Candidates’ Prerequisites

It is estimated that this module will require a minimum of 80 hours of study time. Candidates are expected to have relatively strong capability in the application and analysis of information provided in this outline and its reference. The amount of study hours needed depends on the education background and work experience of the candidates. Candidates are also expected to update themselves with the latest changes relevant to this module as all questions will be continuously updated to reflect these changes.

Methodology

This course will be delivered using effective learning methods which include presentations, discussions and review examination questions.