NISM Series XVI study guide
NISM Series XVI · Work through your exam, one topic at a time.
The NISM-Series-XVI: Commodity Derivatives Certification Examination is one of the certification examinations offered by the National Institute of Securities Markets (NISM), which the source describes as a public trust established in 2006 by the Securities and Exchange Board of India (SEBI), the regulator of the securities markets in India. NISM lists the exam under the Derivatives group of its certification examinations, alongside the Currency Derivatives, Equity Derivatives, Interest Rate Derivatives and Common Derivatives certifications. The NISM Series XVI study guide has 6 sections and about 2,127 words.
01Introduction to Commodity Markets
This section covers the Introduction to Commodity Markets domain of the Series XVI exam. It tests the foundations: what a commodity derivative represents, who uses it, how spot and futures prices relate, and how India's market is structured.
368 words, about 2 min02Commodity Futures and Options
This domain tests contract design and the mechanics of futures and options on commodity futures. You must be able to read a contract specification, compute contract value and margin, and explain option payoffs.
367 words, about 2 min03Commodity Trading
This domain tests how orders are placed and executed, how positions are limited and monitored, and what trading costs apply. Questions often require you to distinguish order types and to calculate margin, position limits or net profit.
349 words, about 2 min04Clearing and Settlement
This domain tests the post-trade chain: how trades are novated, margined, marked to market and settled, and how physical delivery works. The central idea is that the clearing corporation becomes the counterparty to every trade and manages default risk through margins and a settlement guarantee fund.
370 words, about 2 min05Regulatory Framework for Commodity Derivatives
This domain tests the legal architecture: who regulates commodity derivatives, which statutes apply, how exchanges and intermediaries are recognised, and what conduct is prohibited. It rewards precise regulator names and instruments, not broad statements.
334 words, about 2 min06Risk Management and Client Protection
This domain tests the controls that keep a commodity derivatives market safe and the rules that protect clients from member default or misconduct. Expect questions on margins, position limits, segregation, dispute resolution and the limits of investor protection.
339 words, about 2 min