Derivatives Level 3 (Capital Markets Programme) – Quiz 10

Last Updated: June 2024

Table of Contents

CISI – Derivatives Level 3 (Capital Markets Programme) Quiz 10 is completed –
know in general terms the scope and purposes of regulation of derivatives and the main activities of regulators: • UK / Europe / other • US (Fed, SEC & CFTC) • Far East (Hong Kong, Singapore and Japan) • MiFID II, ESMA, EMIR • Orderly Markets • Consumer Protection • Education • Combating Financial Crime • Regulation of individuals, companies • Supervision • Sanction processes • Passporting regulated status • Classifications / Exemption
know the primary requirements of a regulated derivatives exchange
Regulatory Requirements :
Rules Based versus Principles Based Regulation On completion, the candidate should:
know in general terms the importance of the principles based approach to derivatives regulation: • client classification • fair treatment of customers • suitability and appropriateness of the transaction/product • best execution
know the differences between rules-based and principles-based regulation
Principal Differences Between UK, EU and US Regulations
know the role of regulation on derivative markets: • MiFID II • client money • client accounts • margining practices • unregulated markets • access to overseas markets • access to overseas clients
Principal Differences Between UK, EU and US Regulations
know the role of the Securities and Exchange Commission (SEC) in the regulation of derivatives: • what is the SEC • regulated investments • regulated exchanges
Principal Differences Between UK, EU and US Regulations
know the role of the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA): • what is the CFTC • what is the NFA • regulated investments • regulation of other entities • dispute resolution
know the prohibitions of CFTC Part 30 (Foreign Futures and Segregation of Customer Funds)

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