The examination seeks to create a common minimum knowledge benchmark for persons working in the Interest Rate Derivatives market segment, in order to enable a better understanding of fixed income securities markets and interest rate derivative products, regulations and risks associated with the products and the exchange mechanisms of clearing and settlement.

Examination Objectives:

On successful completion of the examination the candidate should:

• Know the basics of fixed income securities markets and specifically interest rate derivative markets in Indian and developed world.
• Understand the analytical framework required for Bond Futures market in India along with trading and hedging strategies involved
• Understand the clearing, settlement and risk management as well as the operational mechanism related to interest rate derivatives markets
• Know the regulatory environment in which the interest rate derivatives markets operate in India.

Assessment Structure:

The NISM-Series-IV: Interest Rate Derivatives Examination will be of 100 marks, will have 100 questions, and should be completed in 2 hours. There will be negative marking of 25% of the marks assigned to a question. The passing score for the examination is 60%.