PracticeVideosBlogFlashcardsEspañol
All Practice Exams

100+ Free SIDC Module 16 Practice Questions

Pass your SC Licensing Examination Module 16: Rules and Regulations of Futures and Options exam on the first try — instant access, no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately
100+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More Malaysia Capital Markets Exams

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

AICB Investor Protection Professional Certification (IPPC, Malaysia)

Practice Questions

Pasaran Kewangan Malaysia Certificate (PKMC) Module I - Regulatory Framework (Malaysia)

Practice Questions

Pasaran Kewangan Malaysia Certificate (PKMC) Module II (Malaysia)

Practice Questions

Pasaran Kewangan Malaysia Certificate (PKMC) Module III (Malaysia)

Practice Questions

Pasaran Kewangan Malaysia Certificate (PKMC) Module IV (Malaysia)

Practice Questions

SC Licensing Examination Module 17 - Securities and Derivatives Trading: Rules and Regulations (SIDC, Malaysia)

Practice Questions
2026 Statistics

Key Facts: SIDC Module 16 Exam

60 questions

Module 16: Rules and Regulations of Derivatives has 60 multiple-choice questions

SIDC SC Licensing Examination Terms & Conditions

90 minutes

Time allocated to complete the Module 16 exam

SIDC SC Licensing Examination Terms & Conditions

70%

Passing mark required for Module 16 (42 out of 60 correct)

SIDC SC Licensing Examination Terms & Conditions

RM1,250

FY2026 SIDC examination fee under the revised structure

SIDC SC Licensing Examination Terms & Conditions

PRMs allowed

Permitted Reference Materials can be brought into the exam room

SIDC SC Licensing Examinations

Modules 14 & 16

Standard combination required to deal in derivatives under a CMSRL

SC Licensing Handbook

CMSA 2007

The primary capital markets statute tested

Securities Commission Malaysia

100

Free original practice questions in this bank

OpenExamPrep

SC Licensing Examination Module 16: Rules and Regulations of Derivatives is a Level 1 regulatory licensing exam administered by the SIDC for the Securities Commission Malaysia. It consists of 60 multiple-choice questions, has a 90-minute time limit, and requires a 70% pass score (42 correct answers). Candidates may use permitted reference materials (PRMs) during the exam. The FY2026 registration fee is RM1,250 per sitting. Passing Module 16 (usually paired with Module 14) is required to deal in derivatives or hold compliance roles in Malaysia. This 100-question practice bank provides comprehensive mock practice on the regulatory and legal aspects of the Malaysian derivatives market.

Sample SIDC Module 16 Practice Questions

Try these sample questions to test your SIDC Module 16 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Capital Markets and Services Act 2007 (CMSA), which of the following regulatory authorities is responsible for licensing capital market intermediaries in Malaysia?
A.Securities Commission Malaysia (SC)
B.Bursa Malaysia Derivatives Berhad
C.Bank Negara Malaysia (BNM)
D.Ministry of Finance (MOF)
Explanation: The Securities Commission Malaysia (SC) is the sole statutory body responsible for licensing and regulating all capital market intermediaries and activities in Malaysia under the CMSA 2007. While Bank Negara Malaysia regulates the banking and insurance sectors, the capital market falls under the purview of the SC. Bursa Malaysia acts as an exchange and co-regulator but does not issue statutory licences.
2What is the principal statutory objective of the Securities Commission Malaysia Act 1993?
A.To establish the Securities Commission Malaysia and define its regulatory functions and powers
B.To govern the listing of derivatives contracts on Bursa Malaysia Derivatives Berhad
C.To license individual compliance officers in commercial banks
D.To establish a compensation fund for equity market defaults only
Explanation: The Securities Commission Malaysia Act 1993 is the principal statute that establishes the Securities Commission Malaysia (SC) as a body corporate and defines its powers, functions, and responsibilities. It provides the statutory foundation for market oversight, investor protection, and the regulation of market intermediaries. Other acts like the CMSA 2007 govern specific licensing requirements and market offenses.
3Under the Capital Markets and Services Act 2007 (CMSA), 'dealing in derivatives' is classified as:
A.A regulated activity requiring a Capital Markets Services Licence (CMSL) or Capital Markets Services Representative's Licence (CMSRL)
B.An unregulated financial activity that only requires registration with the Companies Commission of Malaysia
C.An activity under the exclusive jurisdiction of the Labuan Financial Services Authority (LFSA)
D.A commercial transaction exempt from licensing if executed by corporate clients
Explanation: Dealing in derivatives is defined as a regulated activity under Schedule 2 of the CMSA 2007. Any corporate entity carrying on this activity must hold a Capital Markets Services Licence (CMSL), and individuals representing such corporations must hold a Capital Markets Services Representative's Licence (CMSRL). Engaging in this activity without a licence is a serious offence under the CMSA.
4Which type of licence must be held by an individual acting as a dealer's representative or trading representative in the Malaysian derivatives market?
A.Capital Markets Services Representative's Licence (CMSRL)
B.Capital Markets Services Licence (CMSL)
C.Registered Representative Certificate from Bank Negara Malaysia
D.Qualified Derivatives Trader Certificate from Bursa Malaysia
Explanation: Under the CMSA 2007, individuals acting as representatives of a licensed firm to perform regulated activities must hold a Capital Markets Services Representative's Licence (CMSRL). The firm itself holds the Capital Markets Services Licence (CMSL). BNM and Bursa Malaysia do not issue these statutory licences.
5According to the Securities Commission Malaysia's Licensing Handbook, what is the default validity period of a Capital Markets Services Representative's Licence (CMSRL)?
A.One year, after which it must be renewed annually
B.Three years, subject to continuous assessment
C.Five years, provided no regulatory complaints are filed
D.Unlimited validity, subject only to ongoing compliance
Explanation: Under the Licensing Handbook of the Securities Commission Malaysia, a CMSRL is generally issued with an annual validity period. Representatives must renew their licences every year by submitting the required renewal applications, paying fees, and demonstrating compliance with training requirements such as Continuing Professional Education (CPE) points. Failure to renew on time results in the licence lapsing.
6The Securities Commission Malaysia (SC) co-regulates the derivatives market with Bursa Malaysia Derivatives Berhad. What is the main distinction in their regulatory functions?
A.The SC is the statutory regulator with legislative oversight, while Bursa Malaysia Derivatives is the front-line regulator and exchange operator
B.The SC regulates individual traders, while Bursa Malaysia Derivatives regulates only clearing houses
C.The SC operates the trading systems, while Bursa Malaysia Derivatives drafts the capital market acts
D.The SC acts as a dispute mediator, while Bursa Malaysia Derivatives issues criminal sanctions
Explanation: The SC is a statutory body established under the Securities Commission Malaysia Act 1993 with legislative and overall oversight powers over the entire capital market. Bursa Malaysia Derivatives Berhad is an exchange operator and self-regulatory organisation (SRO) that acts as the front-line regulator by supervising trading activities, managing market operations, and enforcing its own rules on its Trading Participants. Bursa Malaysia cannot enact laws or issue statutory licences, which are the exclusive domain of the SC.
7Under the Securities Commission Malaysia Licensing Handbook, which of the following qualifications may qualify an individual for an exemption from passing Module 14 (Derivatives) for a CMSRL application?
A.Chartered Financial Analyst (CFA) charterholder status
B.A Master's degree in Economics from a local university
C.Passing the Securities Industry Essentials (SIE) exam of the United States
D.Two years of experience as an equity dealer's representative
Explanation: Among the options, the Chartered Financial Analyst (CFA) qualification is the recognised professional credential that may support an exemption from a technical SCLE module such as Module 14 (Derivatives) under the SC's examination-exemption policy, the principle being that equivalent professional competency can substitute for the technical module. A candidate must still pass the local-rules module (Module 16) to demonstrate familiarity with Malaysian laws and exchange rules. A general academic degree, the US SIE exam, or unrelated equity dealer experience do not grant such an exemption.
8How many Continuing Professional Education (CPE) points must a CMSRL holder accumulate annually as a condition for licence renewal?
A.20 points
B.10 points
C.30 points
D.40 points
Explanation: Under the SC Licensing Handbook and the CPE Guidelines, a representative holding a CMSRL must accumulate a minimum of 20 CPE points during each calendar year prior to renewal. These points are earned by attending SIDC-approved training programs, seminars, and courses related to the capital markets. This requirement ensures that licensed representatives maintain up-to-date professional knowledge and competencies.
9In addition to Module 16 (Rules and Regulations of Derivatives), which other SIDC module must a candidate typically pass to qualify for a CMSRL to deal in derivatives?
A.Module 14 (Derivatives)
B.Module 6 (Stock Market and Securities Law)
C.Module 7 (Financial Statement Analysis)
D.Module 11 (Fundamentals of Compliance)
Explanation: The standard licensing combination for a representative dealing in derivatives is Module 14 (Derivatives) and Module 16 (Rules and Regulations of Derivatives). Module 14 covers the quantitative, technical, and market aspects of futures and options, while Module 16 focuses on the regulatory framework. Passing both is required by the SC unless an exemption applies.
10Under the SC Licensing Handbook, within what timeframe must a licensed representative (CMSRL holder) notify the Securities Commission of any change in their employment status or other material changes to their registered details?
A.Within 14 days of the change
B.Within 30 days of the change
C.Immediately, no later than 24 hours after the change
D.At the time of their annual licence renewal
Explanation: The SC Licensing Handbook requires all licensees to notify the Securities Commission in writing of any change in status or details, such as resignation, change of employer, or disciplinary action, within 14 days of the event. Failure to notify the SC within this statutory period is a breach of licensing conditions. Prompt notification ensures the integrity and accuracy of the public register of licensees.

About the SIDC Module 16 Exam

SC Licensing Examination Module 16: Rules and Regulations of Derivatives (formerly titled Rules and Regulations of Futures and Options) assesses a candidate's knowledge and understanding of the regulatory framework governing the Malaysian derivatives market. It is a mandatory examination for 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 principal acts (CMSA 2007 and Securities Commission Malaysia Act 1993), licensing requirements, the Rules of Bursa Malaysia Derivatives Berhad (BMD), trading procedures under the BMD Trading Manual, clearing and settlement under the Bursa Malaysia Derivatives Clearing (BMDC) rules, market conduct and client relations guidelines, market misconduct offenses (such as insider trading and manipulation), and AML/CFT compliance obligations. Candidates are allowed to bring permitted reference materials into the examination.

Assessment

60 multiple-choice questions, each with four options and one correct answer. Candidates are allowed to use specific permitted reference materials (PRMs) in the examination room.

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

RM1,250 per sitting in FY2026 under SIDC's revised fee structure (RM1,000 in FY2025, rising to RM1,500 in FY2027); fees are subject to change. (Securities Industry Development Corporation (SIDC), on behalf of the Securities Commission Malaysia)

SIDC Module 16 Exam Content Outline

25%

Regulatory Framework and Licensing

Structure of the Malaysian derivatives market, powers and functions of the Securities Commission Malaysia under the CMSA 2007 and Securities Commission Act 1993, licensing requirements for CMSRL and CMSL holders, and Licensing Handbook compliance.

25%

Rules of Bursa Malaysia Derivatives

The corporate and regulatory structure of Bursa Malaysia Derivatives Berhad (BMD) and Bursa Malaysia Derivatives Clearing Berhad (BMDC), categories of membership (Trading Participants, Clearing Participants), rights and obligations of participants, and clearing house operations.

20%

Trading Rules and Market Operations

BMD Trading Rules, trading sessions, order entry and matching, market contracts and specifications, price limits, cooling-off periods, position limits, trade registration, error trades, and exchange emergency powers.

15%

Market Conduct and Client Relations

Guidelines on Conduct for Capital Market Intermediaries, client onboarding, segregation of client assets, standard of care, suitability of recommendations, management of client accounts, conflicts of interest, and dispute resolution.

10%

Market Misconduct and Offences

Derivatives-related offenses under the CMSA 2007, false trading, market rigging, cornering and manipulation, insider trading prohibitions, false or misleading statements, and criminal, civil, and administrative sanctions.

5%

AML/CFT and Guidelines on CFDs

Guidelines on Prevention of Money Laundering and Terrorism Financing for Capital Market Intermediaries (Customer Due Diligence, record keeping, STR reporting), and Guidelines on Contracts for Difference (CFDs).

How to Pass the SIDC Module 16 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. Candidates are allowed to use specific permitted reference materials (PRMs) in the examination room.
  • Time limit: 90 minutes for the 60 multiple-choice questions.
  • Exam fee: RM1,250 per sitting in FY2026 under SIDC's revised fee structure (RM1,000 in FY2025, rising to RM1,500 in FY2027); fees are 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 16 Study Tips from Top Performers

1Familiarize yourself with the layout and structure of the Permitted Reference Materials (PRMs) since you can look up specific rules and sections during the exam. Do not rely entirely on them, as searching takes up valuable time.
2Pay close attention to market misconduct under Part VI of the CMSA 2007. Understand the difference between insider trading, false trading/market rigging, and market manipulation, and know their civil/criminal penalties.
3Review the roles, rights, and duties of Trading Participants (TPs) and Clearing Participants (CPs) under the Rules of Bursa Malaysia Derivatives Berhad.
4Understand the margin maintenance rules, position limits, price limits, and dispute resolution guidelines for resolving customer disputes.
5Study the Guidelines on Prevention of Money Laundering and Terrorism Financing, focusing on Customer Due Diligence (CDD), Enhanced Due Diligence (EDD), and Suspicious Transaction Report (STR) thresholds.
6Use practice questions to build speed. You have 90 minutes for 60 questions, which is 1.5 minutes per question. Knowing how to quickly navigate your reference materials is key.

Frequently Asked Questions

How many questions are on SIDC Module 16 and how long is the exam?

Module 16: Rules and Regulations of Derivatives has 60 multiple-choice questions and a time limit of 90 minutes. It is delivered as a computer-based examination.

What is the passing mark for SIDC Module 16?

The passing mark for Module 16 is 70%, meaning a candidate must answer at least 42 of the 60 questions correctly to pass.

What are Permitted Reference Materials (PRMs) for Module 16?

SIDC allows candidates to use specified reference books (such as the CMSA 2007, Securities Commission Malaysia Act 1993, Rules of Bursa Malaysia Derivatives, and the Trading Manual) in the examination room, provided they do not contain any handwritten notes, markings, or tabs other than standard divider tabs.

How much does the Module 16 examination cost?

Under the revised SIDC fee structure, the fee for Module 16 is RM1,250 per sitting in FY2026 (RM1,000 in FY2025, and RM1,500 in FY2027). Confirm current fees at erp.sidc.com.my.

Who needs to take Module 16?

Module 16 is required for individuals applying for a Capital Markets Services Representative's Licence (CMSRL) to trade derivatives or to serve as a Compliance Officer in a derivatives trading firm. It is typically paired with Module 14 (Derivatives).

Who administers the Module 16 examination?

The examination is administered by the Securities Industry Development Corporation (SIDC), which is the training and assessment arm of the Securities Commission Malaysia.