MCX Certified Commodity Professional (MCCP)

MCX Certified Commodity Professional (MCCP) is an ideal beginner's programme for those who want to pursue a career in the commodity derivative markets. The MCCP 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. The certification is valid for three years from the date of issue.

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 Executives
• 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.

MCCP Course Contents:

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

MCX Certified Commodity Professional (MCCP)
MCX Certification - MCCP Certification - MCCP Exams
MCCP Modules - MCCP Courses - MCCP Training in Hyderabad / Secunderabad