100+ Free SIDC Module 14 Practice Questions
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Key Facts: SIDC Module 14 Exam
60 questions
Module 14: Derivatives has 60 multiple-choice questions
SIDC SC Licensing Examination Terms & Conditions
90 minutes
Time allocated to complete Module 14
SIDC SC Licensing Examination Terms & Conditions
70%
Passing mark required for Module 14
SIDC SC Licensing Examination Terms & Conditions
RM400
Examination fee per sitting for Module 14
SIDC SC Licensing Examination Terms & Conditions
January 2018
Module 14 retitled from Futures and Options to Derivatives
SIDC SC Licensing Examinations
Modules 14 & 16
Standard combination required to deal in derivatives under a CMSRL
SC Licensing Handbook
SPAN
Portfolio margining methodology used by Bursa Malaysia Derivatives Clearing
Bursa Malaysia Derivatives
100
Free original practice questions in this bank
OpenExamPrep
SC Licensing Examination Module 14: Derivatives (formerly Futures and Options) is a Level 2 professional licensing exam administered by the SIDC for the Securities Commission Malaysia. It has 60 multiple-choice questions, a 90-minute time limit and a 70% passing mark, so a candidate must answer at least 42 questions correctly. The current SIDC examination fee is RM400 per sitting. Module 14 is required, usually with Module 16, to apply for a Capital Markets Services Representative's Licence (CMSRL) for dealing in derivatives, and CFA charterholders are exempted from it. This 100-question bank provides original practice on futures and options, Bursa Malaysia Derivatives products, clearing, margins, hedging and the CMSA framework.
Sample SIDC Module 14 Practice Questions
Try these sample questions to test your SIDC Module 14 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1A derivative contract that gives the holder the right, but not the obligation, to buy or sell a specified asset at a specified price on or before a specified date is best described as:
2Which feature most clearly distinguishes an exchange-traded futures contract from an over-the-counter (OTC) forward contract?
3The derivatives exchange on which contracts such as FKLI and FCPO are traded in Malaysia is:
4A trader who buys (goes long) a futures contract expects the price of the underlying to:
5The buyer of a call option benefits when the price of the underlying asset:
6Bursa Malaysia Derivatives Clearing Berhad (BMDC) acts as the central counterparty (CCP) to every trade. This means BMDC:
7Initial margin in futures trading is best described as:
8The process by which open futures positions are revalued each day against the official settlement price, with profits and losses settled in cash, is called:
9FCPO, one of the flagship contracts on Bursa Malaysia Derivatives, is the futures contract on:
10A palm oil refiner that needs to buy crude palm oil in three months and fears a price increase would most appropriately:
About the SIDC Module 14 Exam
SC Licensing Examination Module 14: Derivatives (previously titled Futures and Options, retitled effective January 2018) assesses a candidate's knowledge and understanding of futures and options in the Malaysian capital market. It is one of the examinations that must be passed by individuals applying for a Capital Markets Services Representative's Licence (CMSRL) to carry on the regulated activity of dealing in derivatives, or to act as a Compliance Officer for a derivatives firm. The syllabus covers the fundamentals of forwards, futures, options and swaps; the structure and products of Bursa Malaysia Derivatives Berhad (BMD); trading, clearing and settlement through Bursa Malaysia Derivatives Clearing (BMDC); hedging, speculation and arbitrage; margins and the SPAN margining system; and the regulatory framework under the Capital Markets and Services Act 2007 (CMSA). The examination is administered by the Securities Industry Development Corporation (SIDC) on behalf of the Securities Commission Malaysia.
Assessment
60 multiple-choice questions, each with four options and one correct answer. As a Level 2 examination it tests both recall and the application of concepts to market situations.
Time Limit
90 minutes for the 60 multiple-choice questions.
Passing Score
70% (a candidate must answer at least 42 of the 60 questions correctly).
Exam Fee
RM400 per sitting (first sitting and re-sitting) under the current SIDC examination terms and conditions; fees are set by the SIDC and subject to change. (Securities Industry Development Corporation (SIDC), the training and development arm of the Securities Commission Malaysia)
SIDC Module 14 Exam Content Outline
Derivatives, Futures and Options Fundamentals
Definitions and characteristics of forwards, futures, options and swaps; long and short positions; calls and puts; intrinsic value and time value; standardised contract terms; payoff and profit profiles; and the difference between exchange-traded and over-the-counter derivatives.
Malaysian Derivatives Market and Bursa Malaysia Derivatives Products
The structure of Bursa Malaysia Derivatives Berhad (BMD); listed contracts such as FKLI (FBM KLCI Futures), FCPO (Crude Palm Oil Futures), OKLI/OCPO options, FGLD (Gold Futures), FKB3 (KLIBOR Futures) and bond futures; contract specifications; participants; and the exchange's price-discovery role.
Trading, Clearing and Settlement
Order entry and matching; the role of Bursa Malaysia Derivatives Clearing (BMDC) as the central counterparty; novation; daily mark-to-market; physical delivery versus cash settlement; final settlement value; and clearing and trading participant categories.
Hedging, Speculation and Arbitrage
Using derivatives to hedge, speculate and arbitrage; long and short hedges; basis and basis risk; the hedge ratio; cash-and-carry arbitrage; and intra-commodity and calendar spreads.
Margins and SPAN
Initial margin and variation (maintenance) margin; margin calls and how they are met; the SPAN (Standard Portfolio Analysis of Risk) portfolio margining methodology used by BMDC; eligible collateral; and the leverage created by margin trading.
Regulatory Framework (CMSA and CMSRL)
The Capital Markets and Services Act 2007 (CMSA); the role of the Securities Commission Malaysia; the Capital Markets Services Representative's Licence (CMSRL); the Rules of Bursa Malaysia Derivatives; and the conduct, disclosure and record-keeping duties of registered persons.
Risk Management and Pricing
Futures pricing and cost of carry; option pricing factors and the Greeks; volatility; market, counterparty, liquidity and operational risk; daily price limits, cooling-off periods and position limits; and the role of risk-based margining in protecting the market.
How to Pass the SIDC Module 14 Exam
What You Need to Know
- Passing score: 70% (a candidate must answer at least 42 of the 60 questions correctly).
- Assessment: 60 multiple-choice questions, each with four options and one correct answer. As a Level 2 examination it tests both recall and the application of concepts to market situations.
- Time limit: 90 minutes for the 60 multiple-choice questions.
- Exam fee: RM400 per sitting (first sitting and re-sitting) under the current SIDC examination terms and conditions; fees are set by the SIDC and subject to change.
Keys to Passing
- Complete 500+ practice questions
- Score 80%+ consistently before scheduling
- Focus on highest-weighted sections
- Use our AI tutor for tough concepts
SIDC Module 14 Study Tips from Top Performers
Frequently Asked Questions
How many questions are on SIDC Module 14 and how long is the exam?
Module 14: Derivatives has 60 multiple-choice questions and a time limit of 90 minutes. Each question has four options with one correct answer.
What is the passing mark for Module 14?
The passing mark for Module 14 is 70%, so a candidate must answer at least 42 of the 60 questions correctly to pass.
How much does the Module 14 examination cost?
Under the current SIDC examination terms and conditions, the fee for Module 14 is RM400 per sitting for both the first sitting and re-sittings. Fees are set by the SIDC and can change.
Why has the module been renamed from Futures and Options to Derivatives?
Effective January 2018 the SIDC retitled Module 14 from 'Futures and Options' to 'Derivatives'. The exam still assesses knowledge of futures and options in the Malaysian capital market.
What licence does Module 14 lead to?
Module 14 is required to apply for a Capital Markets Services Representative's Licence (CMSRL) for dealing in derivatives. The dealing-in-derivatives licence requires Modules 14 & 16 (or other approved combinations). CFA charterholders are exempted from Module 14.
Who administers Module 14?
The examination is administered by the Securities Industry Development Corporation (SIDC), the training and development arm of the Securities Commission Malaysia, which regulates the Malaysian capital market.