MCX Certified Commodity Professional (MCCP)

Introduction
MCCP is an ideal beginner’s programme for those who want to pursue a career in the commodity derivative markets. The programme has two modes: (a) distance learning and online test, and (b) classroom training and online test. The course is designed to provide the necessary inputs required to get the participants well versed with the modalities of the commodity markets in India, such as the scope of commodity markets, regulatory framework, trading, clearing and settlement, delivery procedures, and legal and investment issues. Participants will be awarded the ‘MCX Certified Commodity Professional’ certificate on successfully clearing the online objective-type test, scoring a minimum of 50 percent marks. The test can be taken at any one of the approved test centres of the Exchange. It consists of 50 questions, which must be answered in 90 minutes. The reference material for the test is provided to the participants at the time of registration. All questions carry equal marks. However, there is negative marking for questions answered incorrectly. The certification is valid for three years from the date of issue.

Participants should keep themselves up-to-date with the recent developments on the Exchange and in the commodity markets.

Who will benefit from this programme?

• Commodity Brokers
• Stock Brokers
• Students of Finance
• Treasury Executives
• Investors
• Portfolio Managers
• Investment Analysts
• Importers 
• Exporters
• Hedgers
• Bank Treasury Officials
• Regulatory Staff
• Arbitragers
• Back Office Software Development Executives
• Fund Managers
• Credit Risk Managers

Benefits of taking this programme

• Get an insight into the entire gamut of commodity derivatives markets in India.
• Understand the market dynamics in India and abroad.
• Learn how to trade in commodity markets.
• Understand price risk management strategies.
• Understand the market operations.

Terms and Conditions
Fee for appearing for the online test is Rs 1,500, inclusive of the test fee and cost of the reference material but excluding 10.30% service tax. The total fee is Rs 1,655. Fee once paid will not be refunded. Candidates must appear for the online test within six months of their registration. In case a candidate does not appear for the online test within six months of his/her registration or wants to reappear for the test for increasing his/her grades, he/she has to pay an additional fee of Rs 500 + 10.30% service tax (Total: Rs 552). No additional reference material will be provided to participants reappearing for the test. The certificate will be issued within 15 days from the date of the test and will be couriered to the address given in the registration form. FTKMC also conducts MCCP classroom training programmes. There are regular morning batches and evening batches. Fee for the classroom training programme is Rs 5,000 + 10.30% service tax (Total: Rs 5,515). The fee is inclusive of reference material and online test.

How to Register
Participants need to send the duly filled registration form with two passport-size colour photographs and a cheque or demand draft drawn in favour of ‘Financial Technologies Knowledge Management Company Ltd’ and payable at Mumbai, to the address given below:

Download Registration Form

MCCP Refresher Course

FT Knowledge Management Company Limited
Exchange Square, First Floor, Suren Road,
Chakala, Andheri (East),
Mumbai - 400 093, India
Ph: +91-22-67318888 Extn: 8874
E-mail: knowledgeformarkets@ftkmc.com

Rules and Regulations for the Test
Participants have to apply at least seven days in advance for a time slot for the test at the designated centre. Participants are requested to be present at the Test Centre at least 30 minutes prior to the test. Participants are required to carry their Admit Card, along with an additional photo identity proof at the time of the test. Use of mobile phones is not allowed during the test. In case a participant is found using unfair means during the test, he/she will be expelled. The decision of the FTKMC official will be final and binding. The test consists of 50 objective-type questions and has to be completed within 90 minutes. All questions carry equal marks. Two marks will be awarded for every right answer and half a mark will be deducted for every wrong answer. No marks will be awarded for questions not attempted.

MCCP Reference Material

CHAPTER 1 - HISTORY OF COMMODITY MARKETS

• Evolution of Commodity Markets
• Commodity Markets in India

CHAPTER 2 - INTRODUCTION TO DERIVATIVES

• Introduction to Derivatives
• Meaning of Forwards, Futures, Options and Swaps
• Difference between Spot and Futures Markets
• Difference between Futures and Forward contracts

CHAPTER 3 - INTERNATIONAL COMMODITY EXCHANGES

• World’s major Commodity Exchanges
• New York Mercantile Exchange
• London Metal Exchange
• Chicago Board of Trade
• Tokyo Commodity Exchange
• Chicago Mercantile Exchange
• Some Major International Commodity Exchanges and
• Commodities Traded

CHAPTER 4 - COMMODITY FUTURES IN INDIA AND ITS REGULATIONS

• Evolution of Commodity Futures in India
• The Kabra Committee Report
• Commodity Futures Markets: The Economic Perspective
• Regulatory Framework
• Forward Contract Regulation Act, 1952
• Forward Market Commission and its Functions
• Regulatory Measures evolved by the Commission
• Proposed amendments to FC(R) Act, 1952
• Why do we require National level Multi Commodity Futures Exchanges in India?

CHAPTER 5 - MULTI COMMODITY EXCHANGE OF INDIA LTD

• About MCX
• Key Shareholders of MCX
• Membership at MCX
• Trading Member
• Trading-cum-Clearing Member (TCM)
• Institutional Trading cum Clearing Member (ITCM)
• Professional Clearing Member (PCM)
• Deposit
• Initial Deposit
• Additional Deposit
• Forms of Additional Deposit: Cash and Cash Equivalents
• Bank Guarantee
• Fixed Deposit Receipts
• Additional deposit: Approved Securities and Warehouse Receipts

CHAPTER 6 - COMMODITY FUTURES

• Meaning and Objective of Commodity Futures
• Pricing Commodity Futures: Factors affecting Cost of Carry
• Investment and Consumption Commodities
• Meaning of Basis and Spreads
• Basis
• Basis Risk
• Spread
• Participants in Commodity Derivatives
• Hedgers
• Speculators
• Arbitragers

CHAPTER 7 - ADVANCED CONCEPTS IN COMMODITY FUTURES

• Hedging
• What is Hedging?
• Hedge Ratio
• Buying Hedge or Long Hedge
• Uses of Buying Hedge Strategy
• Buying hedge with Basis Risk
• Selling Hedge or Short Hedge
• Uses of Selling Hedge Strategy
• Selling Hedge with Basis Risk
• Rolling Over of Hedge Position
• Advantages and Limitations of Hedging
• What is Speculation?
• Long Position in Futures
• Short Position in Futures
• Meaning of Spread Trading
• Buying a Spread
• Selling a Spread
• The role of speculation in Futures Markets
• What is Arbitrage?
• Cash and Carry Arbitrage
• Reverse Cash and Carry Arbitrage

CHAPTER 8 - INTRODUCTION TO OPTIONS

• Meaning and Types of Options
• Common Terminologies Used in Options on Futures
• Factors Affecting Option Premium
• Option Pricing
• Black Scholes Formula
• Put-Call parity

CHAPTER 9 - ADVANCED CONCEPTS IN OPTIONS

• Call and Put Option
• Long Position in a Call Option
• Short Position in a Call Option
• Long Position in a Put Option
• Short Position in a Put Option
• Spreads
• Vertical Bull Call Spread
• Vertical Bull Put Spread
• Vertical Bear Call Spread
• Vertical Bear Put Spread
• Butterfly Spread
• Long Butterfly Spread
• Short Butterfly Spread
• Calendar Spread 
• Calendar Spread involving Call Options
• Calendar Spread involving Put Options
• Combination Spreads

CHAPTER 10 - COMMODITY FUTURES TRADING IN MCX: MARKET OPERATIONS

• Trading on MCX Commodity Futures
• Trading Days
• Trading Hours
• Electronic Marketplace
• Using a satellite Network to Link Users to the Exchange
• Systems and Networking
• The Buyers point of view
• Trading System in MCX
• Base Price
• Closing Price
• Dissemination of Open, High, Low and Last Traded Prices
• Life of a Futures Contract
• Expiry Date
• Due Date Rate
• Trader Workstation
• Types of Orders
• Price Related Conditions Orders
• Advantages and Disadvantages of Stop Loss Orders
• What is a Trailing Stop Loss Order?
• Benefits of Stop Loss Order
• Time related Condition Order
• Modification and Cancellation of Orders
• Risk Management
• Price Limit Circuit Filter
• Types of Margin Requirements
• Initial Margin
• Special Margin
• Concept of Calendar Spread Benefit
• Tender Period / Delivery Period Margin
• Exposure Limit and Payment Requirements
• Transaction Fee
• Quality Certification
• Delivery Default Risk Management: Penalty for Non-Performance
• Settlement Guarantee Fund
• Surveillance
• Mark to Market Loss Monitoring
• Maximum Allowable Open Position
• Circuit Filter
• Circular Trading, concentration, price rigging, price manipulation and other abuses
• Clearing, Settlement and Delivery mechanism
• Clearing and Settlement Procedure
• Operational Procedure: Pay in and pay out of Funds
• Role of Clearing House
• Delivery Procedure
• Inspection and Disciplinary Action
• Records, Books of Accounts and Inspection 06
• Fines and Penalties
• Arbitration

CHAPTER 11 - ASSOCIATE COMPANIES OF MCX

• National Bulk Handling Corporation (NBHC)
• National Spot Exchange Limited (NSEAP)

CHAPTER 12 - DEMATERIALIZATION AND REMATERIALIZATION

• What is a Warehouse Receipt?
• Entities involved in the Demat Process
• Demat Account: Types and Purpose
• Process of Demat of Commodity
• Concept of International Commodity Identification Number (ICIN)
• Process of Demat Delivery
• Rematerialisation / Withdrawal / Revalidation of Commodities

CHAPTER 13 - OTHER CONTEMPORARY ISSUES IN COMMODITY MARKETS

• Role of Banks in Commodity Markets
• Recommendations of Working Group on Warehouse Receipts
• Participation of FII and Mutual Funds in Commodity Markets

CHAPTER 14 - MCX TRADERS WORKSTATION (TWS): AN OVERVIEW

• Starting the MCX Traders Workstation
• General Layout of MCX Traders Workstation
• Important Features of TWS: Market Watch, Order Management, Trade Management
• Market Watch
• Contract Information
• Order Management: How to place buy and sell orders?
• Order Book
• Trade Book
• Market Picture
• Bhavcopy (Market Statistics) of the Day’s Session
• Real-Time Monitoring Of Position: Surveillance Watch and Net Position
• Shortcut Keys

CHAPTER 15 - TAXATION AND ACCOUNTING ISSUES

• Taxation Issues in Commodities Markets
• Sales tax Implications of Commodity Futures Transactions
• From the seller’s point of view
• Service Tax
• Bombay Stamp Act, 1958
• Derivatives Accounting: Brief Overview
• Hedge Accounting: Treatment of Derivatives as per International Accounting norms
• Fair Value Accounting
• Deferral Accounting

MCCP MODEL TEST PAPER

Timing for Regular Programmes
Monday-Friday (Morning batch) 8.00 am to 9.30 am
Monday-Friday (Evening batch) 6 pm to 9 pm

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Test Centres

Mumbai:
FT Knowledge Management Company Limited
Contact Person: Ms Swapna Dewoolkar
Exchange Square, Suren Road, Chakala
Andheri (East), Mumbai - 400 093
Phone:+91–22–67318888 Ext.: 8874
Fax: +91–22–66494151
E-mail: knowledgeformarkets@ftkmc.com

Bangalore:
Multi Commodity Exchange of India Ltd
Contact Person: Mr Shiva Mathapati
6/206, 2nd Floor, Money Chambers
K.H. Road, Bangalore 560027
Mobile: 09986860261
E-mail: shiva.mathapati@mcxindia.com

Chennai:
Multi Commodity Exchange of India Ltd
Contact Persons:
Mr R. Rajeesh, Mobile: 9940031683
Mr A.S. Sreevikram, Mobile: 9940062634
Doshi Towers, First Floor, Flat No. 1 A & B,
156, Periyar EVR Salai, Kilpauk,
Chennai - 600 010
Phone: 044 - 43950850
E-mail: r.rajeesh@mcxindia.com

Kolkata:
Multi Commodity Exchange of India Ltd
Contact Person: Ms Noor Afshan Bano
23, R.N. Mukherjee Road
3rd Floor, BNCCI House
Kolkata - 700 001
Mob: 09903863614
E-mail: noor.bano@mcxindia.com

Delhi:
Multi Commodity Exchange of India Ltd
Contact Person: Mr Sunny Sachdeva
501 World Trade Centre
(Next to Inter Continental Hotel)
Babbar Road, Connaught Place
New Delhi 110001
Phone: 011– 43003000
E-Mail: sunny.sachdeva@mcxindia.com

Cochin:
Multi Commodity Exchange of India Ltd
Contact Person: Anand Sheyon
28/715-B, 1st Floor, Thulasi, K P Vallon Road,
Kadavanthara, Cochin – 682020, Kerala.
Mob; 9447162122
Phone: 0484-6576799
E-mail: anand.sheyon@mcxindia.com

Ahmedabad:
Multi Commodity Exchange of India Limited.
Contact Person: Mr Amar Mankad
401, Sakar-1, 4th Floor
Near Gandhigram Railway Station
Opp. Nehru Bridge, Ashram Road
Ahmedabad 380 007
Tel: 079-66615888, 66627888, 66625888
Email: amar.mankad@mcxindia.com

Hyderabad:
Multi Commodity Exchange of India Ltd
Contact Person: Amjad Ali
No. 6-3-350 Plot No 302,
Ganga Estate, Nagarjuna Circle
Road No.1, Banjara Hills
Hyderabad -500 034
Phone: +91 40 66251119
Mob: +91 9642778692
E-mail: amjad.ali@nationalspotexchange.com

Indore:
Financial Technologies (India) Ltd.
Contact Person: Mr Manish Sawai
214 Silver Sanchora Castle, R N T Road
Indore - 452001
Mobile: +91 9826210007
Email: manish.sawai@mcxindia.com

For Franchise enquiries, contact:
knowledgeformarkets@ftkmc.com

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