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MEX is pleased to announce its educational course named "MEX Certified Derivative Basics (MCDB)". MCDB is an ideal beginner's program for those who want to pursue a career and aspire knowledge in the commodity derivative markets.

The course is designed to provide the necessary inputs required to get the participants well versed with the modalities of the commodity market in Nepal, such as the scope of commodity markets, trading, clearing and settlement, delivery procedure, and investment issues.

The course consists of classroom-style teaching by experienced personnel from MEX as well as experienced personnel from this field.

MEX has tied up with National College, Centre for Development Studies (Affiliated to Kathmandu University) for the conduction and certification of educational course, providing quality training on futures derivative to enhance the skill of the participants and enable them to have an edge among other market participants.

Objective of the Training Program:

On completion of this course, the learner will be able to acquire a basic understanding of:

  • Insight into entire gamut of commodity derivatives market in Nepal.
  • Understand the dynamic of derivative in Nepal and world market
  • Learn how to trade in Commodity market.
  • Understand price risk management strategies.
  • Understand the market operations.
  • Functioning and regulation of Exchanges

Who Will Be Benefited From This Program?

  • Commodity Brokers
  • Stock Brokers
  • Students of Finance
  • Treasury Executives
  • Investors
  • Portfolio Managers
  • Investment Analysts
  • Importers
  • Exporters
  • Hedgers
  • Bank Treasury Officials
  • Regulatory personnel
  • Arbitrageurs
  • Back Office Software Development Executives
  • Fund Managers
  • Credit Risk Managers

Registration Form Download the Registration Form

Training program:

Training Management committee (TMC) is authorized body who will ensure optimum mobilization of the provided resources during the training activity and will monitor and review the progress and achievement of each training program.

  • Basic derivative Training

This course shall be conducted for one week (Max. 6 working days) from 5 p.m. to 7 p.m. This training program shall be conducted 4 times in a year.

  • Costs and number of participants

Number of participants shall not exceed 25 in a batch. Cost of training, materials, management of training, selection of the participants, training module preparation, availability of resource person, conduction of examination and certificate awarding shall be decided by Training Management Committee (TMC), jointly formed by MEX and National College

  • Module of Training and Examination
  • The reference material for the test is provided to the participants at the time of training
  • For the effective use of the training program, an objective-type examination will be conducted
  • The marks so obtained will be graded in following levels.
MARKS OBTAINED GRADES
90% and above A+
80% and above A-
70% and above B+
60%and above B-
50% and above C
Below 50% FAIL

The participants will be awarded the 'MEX Certified Derivative Basics (MCDB)' certificate on successful completion of the examination

Course contents are as follows:

MEX Certified Derivative Basic (MCDB) for 7 days
Course Content Time
  • History Of Commodity Markets
  • Introduction to Derivatives
    • Introduction to Derivatives
    • Exchange-traded vs. OTC derivatives markets.
    • Types of derivatives - Forwards, Futures, Options and Swaps
    • Limitations of forward markets
    • Difference between Spot and Futures Markets
    • Difference between Futures and Forward contracts
    • Distinction between Futures and options
2 Hours.
  • Mercantile Exchange Nepal Ltd.
    • Introduction of MEX
    • Objectives of MEX
    • MEX membership
    • Commodities Traded at MEX
    • Benefits of Trading at MEX
 2 Hours.
  • Commodity Futures Trading In MEX: Market Operations
    • Automated Trading System
    • Component of ATS
    • Futures and options trading system
    • Entities in the trading system
    • Basis of trading
    • Order types and conditions
    • Electronic order placement.
    • Future Contract specification at MEX Contract cycle
 2 Hours.
  • Clearing and settlement
    • Clearing entities (Clearing House, Clearing member, Central counterparty)
    • Clearing banks
    • Clearing mechanism
    • Settlement mechanism
    • Settlement of futures contracts
    • Risk Management Systems
2 Hours.
  • Commodity Futures
    • Meaning of Commodity Futures
    • Pricing Commodity Futures: Factors affecting Cost of Carry
    • Investment and Consumption Commodities
    • Meaning of Basis and Spreads
    • Basis Risk
    • Spread Risk
    • Participants in Commodity
2 Hours.
  • Commodity Futures in Nepal
    • Importance of Commodity Market in Nepal
    • Current Scenario of Commodity Market in Nepal
    • Role of Government in Commodity Market.
 2 Hours.
  • Application of Futures
    • Payoff for derivatives contracts (futures)
    • Economic purpose of futures
    • Difference between trading securities and trading futures on individual securities
    • Use of Futures (Only simple strategies of hedging, speculation and arbitrage)
 2 Hours.