3I0-003 Exam Dumps
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| Certification Provider: | ACI |
|---|---|
| Exam Code / Number: | 3I0-003 |
| Exam Name: | ACI SETTLEMENTS CERTIFICATE |
| Exam Questions: | 100 |
| Corresponding Certification: | ACI-Financial Markets Association |
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Who should take the ACI 3I0-003: ACI SETTLEMENTS CERTIFICATE Exam
Everyone who is into promoting the credibility and efficiency of the global operation of the FX Industry is recommended to get this certification. The ACI 3I0-003: ACI SETTLEMENTS CERTIFICATE Exam is primarily intended for the following groups:
- Officers of compliance and risk
- Central banks and regulators
- Personnel from middle offices and operations
- Participants in the financial market from buy side, sell side and intermediary institutions
The benefit of obtaining the ACI 3I0-003: ACI SETTLEMENTS CERTIFICATE Exam Certification
- Chances, within your CPD profile, to explore more ACI Education opportunities
- Enhanced professional development profile with a recognized qualification for the industry
- Compliance with the conformity criteria levied by the financial services authorities
- Formal certification of the perception by individuals of prevailing global norms of behavior and business practices
Introduction to ACI 3I0-003: ACI SETTLEMENTS CERTIFICATE Exam
The ACI 3I0-003: ACI SETTLEMENTS CERTIFICATE Exam is the new exam version that has replaced the well known ACI Model Code exam (3I0-002). As the Model code exam was retired in 2017, this document will only focus on the ACI 3I0-003: ACI SETTLEMENTS CERTIFICATE Exam. The ACI 3I0-003: ACI SETTLEMENTS CERTIFICATE exam tests the comprehension of the six topics and 55 principles set out in the Global Code by a person and is an excellent first step in demonstrating compliance with the new Code and a possible differentiator in terms of career advancement. The program is designed for market participants (as specified by the ACI 3I0-003), including buying and selling groups, intermediaries, regulators and central banks, and is applicable to individuals engaged in front-end trading, middle-class, working, compliance and risk functions.
Topics of ACI 3I0-003: ACI SETTLEMENTS CERTIFICATE Exam
These core topics listed below are general recommendations for the ACI 3I0-003 exam dumps that are likely to be used for the examination. However, on any particular delivery of the test, other similar topics could also appear. The guidelines below can be updated at any time without notice to better represent the contents of the exam and for clarity purposes.
1. Confirmation and Settlement At the end of this section, candidates should: Understand why post trade processes are important to the smooth, predictable and timely settlement of transactions:
- Understand Principle (Operating practice consistency):
- Understand why it is important that there are overarching processes to ensure legal, operating, credit and conduct risks are all aligned
- Understand Principles (Normal and peak conditions):
- Understand the basic expectations for end-to-end processing capacity in normal and peak market conditions
- Understand the need to ensure extreme changes can be responded to in a timely manner.
- Understand Principle (Transmission of trade data):
- Understand what measures to take in the case of a breakdown in the transmission
- Understand what straight-through transmission of trade data is
- Understand Principles (Novations, amendments and cancellations):
- Understand the importance of reporting these trades
- Understand the importance of segregation of duties to facilitate these types of transactions
- Understand Principle (Confirmation):
- Understand the expectations to conduct efficient trading confirmation via bilaterally matched trades over electronic dealing systems
- Understand the risks associated with open-source communications and information security
- Understand what types of confirmation mechanisms are acceptable for transactions in the FXMarket
- Know how confirmations should be transmitted
- Understand Principle (Block transactions):
- Understand the processes to review and affirm block transactions
- Understand how to correctly allocate counterparties to block transactions
- Understand Principle (Discrepancies):
- Understand when it is appropriate to escalate these discrepancies and the use of these records to evaluate operational risks
- Understand how to identify discrepancies and deal with these as quickly as possible
- Understand Principles (Processes specific to each FX product):
- Understand the obligation of operations to establish policies that include procedures to deal with specific confirmation and settlement requirements across all FX products traded in their institution
- Understand Principle (Settlement Risk):
- Understand why methods of quantifying FX Settlement Risk are important
- Understand the appropriate use of automated netting systems
- Understand bilateral netting arrangements that should be in place
- Understand Principles (SSIs):
- Understand the responsibilities for entering, authenticating and maintaining SSIs
- Understand the meaning of Standard Settlement Instructions
- Understand why and how alternate settlement instructions are used
- Understand how settlement is conducted in respect to SSI instructions
- Understand how to set up and maintain SSI data
- Understand Principle (Direct Payment):
- Understand the importance of clearly formulated policies for the use of Third-Party Payment and their correspondent risk assessments
- Understand why arrangements for Third-Party Payment need to be fully agreed and documented prior to trading
- Understand the risk reduction brought by Direct Payments
- Understand Principle (Funding requirements):
- Understand how time zones could affect efficient funding management of nostro accounts across global banks
- Understand the management of funding requirements expected over nostro accounts for each tenor
- Understand why bilateral agreements need to be in place for cancellations and amendments of trade
- Understand Principle (Account reconciliation):
- Understand the importance of timely reconciliations across expected and actual cash flows
- Understand how to resolve disputes related to unreconciled trades.
- Understand the benefits of having automated nostro account reconciliations
- Understand Principle (Settlement discrepancies and compensation claims):
- Understand why policies for compensation costs related to late payments need to be clearly and transparently communicated
- Understand why procedures are necessary to detect settlement discrepancies
- Understand why escalation policies are important to rectify and update Settlement Risk in the case of settlement discrepancies
ACI 3I0-003 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Deal Capture and Confirmations | - Trade processing
|
| Risk Management, Controls and Documentation | - Operational risk and compliance
|
| Settlement, Netting and Clearing | - Settlement processes
|
| Treasury Systems and Data Management | - Systems and reference data
|
| Financial Instruments and Settlement Processes | - Core products
|
| Financial Markets and Treasury Operations | - Overview of financial markets
|
| Reconciliations and Investigations | - Operational controls
|