CISI Derivatives (CISI) study guide
CISI Derivatives · Work through your exam, one topic at a time.
The CISI Derivatives qualification is one of the professional qualifications offered by the Chartered Institute for Securities & Investment (CISI), a financial services professional body with over 54,000 members worldwide. It is designed for practitioners who need a working knowledge of derivative instruments and their markets, including those in trading, sales, risk, compliance, operations and investment management. The CISI Derivatives study guide has 5 sections and about 1,883 words.
01Derivatives fundamentals and market structure
This section tests classification and market structure: how forwards, futures, options and swaps differ by payoff, how exchange-traded and OTC markets operate, and why hedgers, speculators and arbitrageurs use derivatives. Questions often ask you to identify a payoff, calculate a hedge ratio, or explain the role of a central counterparty (CCP).
388 words, about 2 min02Futures and forward contracts
This domain tests forward and futures pricing, convergence, margin mechanics and delivery. You should be able to compute a fair forward price with carry costs or income, explain marking to market, and distinguish initial from variation margin.
345 words, about 2 min03Options: pricing, strategies and risk
This domain tests option payoffs, put-call parity, Black-Scholes inputs and the Greeks, and common strategies. You must distinguish intrinsic and time value, identify moneyness, and explain how delta, gamma, theta, vega and rho change with market moves.
385 words, about 2 min04Swaps and OTC derivatives
This domain tests swap mechanics, valuation and OTC documentation. Expect questions on interest rate swaps, currency swaps, credit default swaps, the ISDA Master Agreement and Credit Support Annex (CSA), counterparty risk and collateral.
396 words, about 2 min05Regulation, clearing, margining and ethics
This domain tests the regulatory architecture for derivatives: clearing obligations, margin rules, trade reporting, client money and market conduct. You should know the roles of CCPs, EMIR/UK EMIR, Dodd-Frank, MiFID II, CASS and the Market Abuse Regulation, and be able to apply ethical standards to scenarios.
369 words, about 2 min