ACI THE MODEL CODE EXAMINATION : 3I0-002

Topics of ACI FX Global Code Certificate Exam

These core topics listed below are general recommendations for the material that is 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 update at any time without notice to better represent the contents of the exam and for clarity purposes.

In addition to the topics discussed below, it is anticipated that candidates will be up-to-date with the latest events and market shifts. The updated syllabus effective from July 2019 onwards for the ACI FX Global Code Certificate Exam is listed below in detail of each section and their topics:

1. Introduction to the FX Global Code

At the end of this section, candidates should:

• Understand what the FX Global Code is and how it was developed know and understand:

• The six leading principles of the FX Global Code
• What is the ‘Statement of Commitment'
• To whom the FX Global Code applies
• What type of Market Participants are impacted by the FX Global Code

2. Ethics

At the end of this section, candidates should understand what is expected of them to exercise judgement to act ethically and professionally:

• Understand Principle 1 (Striving for highest ethical standards):

• Understand who is responsible for maintaining these standards of behaviour
• Know the core expectations for ethical behaviour

• Understand Principle 2 (Strive for the highest professional standards):

• Understand what is required to conduct themselves to the highest standards of professionalism

• Understand Principle 3 (Conflict of interest):

• Understand potential areas where conflicts of interest may arise
• Understand the importance of the disclosure of conflicts of interest
• Know what appropriate arrangements can be made to eliminate conflicts of interest

3. Governance

At the end of this section, candidates should: Understand the appropriate governance structures that should be in place to promote and support the principles of the FX Global Code:

• Understand Principle 4 (Oversight and supervision):

• Understand how to provide business strategy and financial soundness to supervise and oversee Market Participants' conduct

• Understand Principle 5 (A culture of ethical and professional conduct):

• Know and understand different types of internal and external methods of conduct supervision

• Understand Principle 6 (Remuneration structures):

• Understand why different mechanisms of promotion and remuneration are used
• Know the factors to be considered to ensure ethical and professional conduct

• Understand Principle 7 (Policies and procedures for improper behaviour):

• Understand the correct procedure for investigating reports of inappropriate behaviour
• Understand the correct procedures for internal escalation and external reporting
• Understand the importance of effective mechanisms to investigate and respond to reports of inappropriate behaviour
• Know where and how to report concerns of inappropriate behaviour

4. Execution

At the end of this section, candidates should: Understand what is expected to execute and negotiate transactions in a fair and transparent manner:

• Understand Principle 8 (Roles and responsibilities):

• Understand the difference between Agent and Principal

• Understand Principle 9 (Order management):

• Understand conduct expectations of Interdealer Brokers
• Understand expectations of an E-Trading Platform
• Understand the role and conduct expected of order handlers
• Understand conduct expectations of Principal role in order handling
• Understand conduct expectations of Agent role in order handling
• Understand expectations of Clients
• Understand what Clients should be made aware of when handling orders

• Understand Principle 10 (Different types of orders):

• Understand the expected behaviour when only a partial fill has been completed on an order
• Understand the impact of handling orders that may have a sizeable impact on the market
• Understand how to handle Stop Loss Orders
• Understand how to handle a Client order to transact at a fixing rate
• Understand how to fill a Client order correctly

• Understand Principle 11 (Pre-Hedging Client orders):

• Understand the expectations in communicating Pre-Hedging practices to Clients
• Evaluate why Pre-Hedging is used by Market Participants
• Know the acceptable manner in which Pre-Hedging may be conducted to prevent market disruption

• Understand Principle 12 (Price discovery):

• Understand appropriate considerations of market conditions and impact
• Understand the right of a Market Participant to decline a transaction
• Understand the role of quotations
• Understand what is not acceptable behaviour when engaging in the market

• Understand Principle 13 (Bilateral understanding):

• Understand how to confirm market reference price parameters and third-party measures

• Understand Principle 14 (Mark Up):

• Know how to apply fair and appropriate Mark Up to Clients
• Know how to apply transparency when conducting Client business
• Understand the definition of Mark Up
• Know how Mark Up practices should be monitored

• Understand Principle 15 (Trade discrepancies):

• Understand the various participant roles to mitigate risks associated with trade discrepancies

• Understand Principle 16 (Name switching):

• Know what is expected when agreeing to undertake name switching
• Understand when name switching is appropriate

• Understand Principle 17 (Last look):

• Understand the transparency requirements and what disclosures are expected when Market Participants use last look practices
• Understand the definition of last look
• Understand how Market Participants may handle Clients' trade requests in the context of last look

• Understand Principle 18 (Algorithmic trading and aggregation):

• Understand what disclosures are expected when conducting either algorithmic or aggregated trading
• Understand what algorithmic trading is
• Understand ongoing expectations on algorithmic and aggregator providers by their Clients
• Understand what aggregated trading is

5. Information Sharing

At the end of this section, candidates should: Understand what is acceptable conduct when using any form of communication in the FX Market:

• Understand Principle 19 (Confidential Information):

• Understand and identify different types of Confidential Information
• Know how to limit access to and protect Confidential Information

• Understand Principle 20 (Disclosure of Confidential Information):

• Know under which circumstances it is acceptable to disclose Confidential Information

• Understand Principle 21 (Communication):

• Understand why communication is important to the reputation of the firm and industry
• Understand why it is important not to share false or misleading information
• Understand how to articulate the source of information being communicated
• Understand expectations when sharing opinions

• Understand Principle 22 (Market Colour):

• Understand when it is appropriate to share Market Colour
• Understand how to most ethically communicate Market Colour
• Understand what Market Colour is

• Understand Principle 23 (Channels of communication):

• Understand what are acceptable modes of communication
• Understand expectations to trace, audit, record and trace communication

6. Risk Management & Compliance

At the end of this section, candidates should: Understand frameworks of risk management and compliance that assist in the prevention of risks associated with engagement in the FX Market:

• Understand Principle 24 (Frameworks):

• Know the common components of the risk management and compliance frameworks

• Understand Principle 25 (Compliance framework):

• Understand the risk types that risk managers are expected to identify

• Understand Principle 26 (Risk management framework):

• Understand different types ofrisk management frameworks used in the FX Market
• Understand the difference between risk limits and monitoring mechanisms

• Understand Principle 27 (Risks related to FX Trading):

• Understand the importance of reconciliations and reporting of breaches
• Understand the risks associated with limited sources of liquidity
• Understand the importance of regular reporting of positions and trading activity
• Understand the appropriate control measures to ensure proper order and quote submissions
• Understand why monitoring is important in risk management

• Understand Principle 28 (Review of effectiveness of risk and compliance frameworks):

• Understand some methods used to effectively review the risk and compliance functions

• Understand Principle 29 (Counterparty Credit Risk):

• Understand options to manage counterparty risks
• Understand what counterparty credit risk is
• Understand record-keeping expectations to mitigate counterparty risks

• Understand Principle 30 (Market Risk management):

• Understand the effect of liquidity conditions on market risk
• Understand what stress testing is

• Understand Principle 31 (Mark-to-market):

• Understand acceptable external resources to obtain prices to calculate mark-tomarket valuations
• Understand how to source alternative acceptable pricing when reference pricing is not available
• Understand the importance of agreed market opening and closing hours in efficient referencing for mark-to-market evaluation prices
• Understand what is meant by mark-to-market

• Understand Principle 32 (Operational Risk):

• Understand operational risks when conducting cross-border trading
• Understand operational risks related to infrastructure
• Understand what operational risk is

• Understand Principle 33 (Business Continuity Plan):

• Understand why Business Continuity Plans are important
• Understand some types of Business Continuity Plans

• Understand Principle 34 (Technology Risks):

• Understand risks associated with reliance on technology and systems
• Understand processes that could be used to mitigate these risks

• New system integration
• E-Trading Platforms
• Understand Principle 35 (Settlement Risk):
• Third-party electronic venues

• Understand some options to mitigate Settlement Risk
• Understand what settlement is

• Understand principle 36 (Compliance Risk):

• Understand what types of records are expected to be stored for future access
• Understand how record retention affects Compliance Risk

• Understand Principle 37 (KYC):

• Understand some processes and procedures applicable to measure KYC
• Understand why Know-Your-Customer (KYC) is important

• Understand Principle 38 (Governance and Controls):

• Understand why it is important to have adequate governance and controls to limit trading access
• Understand some acceptable forms of monitoring practices used in the FX Market

• Understand Principle 39 (Records of transactions):

• Understand what type of records need to be kept in relation to transactions
• Understand how these records could be used post-conclusion of the transaction

• Understand Principle 40 (Legal Risk):

• Understand the difference between Applicable Law and standard terms and conditions
• Understand how to deal with legal changes proposed during negotiation of deals

• Understand Principle 41 (Prime Broking):

• Understand what inclusions in Prime Broker's policies are important to smooth market operations
• Understand what types of risk management are expected from a Prime Broker
• Understand why real-time oversight is important for a Prime Broker

7. 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 42 (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 Principle 43 (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 44 (Transmission of trade data):

• Understand what straight-through transmission of trade data is
• Understand what measures to take in the case of a breakdown in the transmission

• Understand Principle 45 (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 46 (Confirmation):

• Understand the risks associated with open-source communications and information security
• Understand the expectations to conduct efficient trading confirmation via bilaterally matched trades over electronic dealing systems
• Understand what types of confirmation mechanisms are acceptable for transactions in the FXMarket
• Know how confirmations should be transmitted

• Understand Principle 47 (Block transactions):

• Understand how to correctly allocate counterparties to block transactions
• Understand the processes to review and affirm block transactions

• Understand Principle 48 (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 Principle 49 (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 50 (Settlement Risk):

• Understand why methods of quantifying FX Settlement Risk are important
• Understand bilateral netting arrangements that should be in place
• Understand the appropriate use of automated netting systems

• Understand Principle 51 (SSIs):

• Understand how settlement is conducted in respect to SSI instructions
• Understand how to set up and maintain SSI data
• Understand why and how alternate settlement instructions are used
• Understand the meaning of Standard Settlement Instructions
• Understand the responsibilities for entering, authenticating and maintaining SSIs

• Understand Principle 52 (Direct Payment):

• Understand the importance of clearly formulated policies for the use of Third-Party Payment and their correspondent risk assessments
• Understand the risk reduction brought by Direct Payments
• Understand why arrangements for Third-Party Payment need to be fully agreed and documented prior to trading

• Understand Principle 53 (Funding requirements):

• Understand why bilateral agreements needs to be in place for cancellations and amendments of trades
• Understand the management of funding requirements expected over nostro accounts for each tenor
• Understand how time zones could affect efficient funding management of nostro accounts across global banks

• Understand Principle 54 (Account reconciliation):

• Understand how to resolve disputes related to unreconciled trades.
• Understand the importance of timely reconciliations across expected and actual cash flows
• Understand the benefits of having automated nostro account reconciliations

• Understand Principle 55 (Settlement discrepancies and compensation claims):

• Understand why escalation policies are important to rectify and update Settlement Risk in the case of settlement discrepancies
• Understand why procedures are necessary to detect settlement discrepancies
• Understand why policies for compensation costs related to late payments need to be clearly and transparently communicated

Have you ever heard the old saying that Success always belongs to those people who seize tightly an opportunity in no time? When you are confronted with many chooses about training material and never dare to make a decision, we can be proud to say that our 3I0-002 quiz torrent: ACI THE MODEL CODE EXAMINATION have won wide reception and preference among people from all countries. You can completely feel safe to take advantage of these 3I0-002 quiz braindumps. Time doesn't wait anyone, opportunity doesn't wait anyone. If you are really eager to achieve success in the ACI THE MODEL CODE EXAMINATION real test, please choose us.

Who should take the ACI FX Global Code Certificate Exam

Everyone who is into promoting the credibility and efficiency of global operation of the FX Industry is recommended to get this certification. The ACI FX Global Code Certificate Exam is primarily intended for the following groups:

• Personnel from middle offices and operations
• Central banks and regulators
• Officers of compliance and risk
• Participants in the financial market from buy side, sell side and intermediary institutions

Reasonable price for our customers

As we know, our 3I0-002 study guide can be recognized as the most helpful and the greatest 3I0-002 quiz torrent: ACI THE MODEL CODE EXAMINATION across the globe. Even though you are happy to hear this good news, you may think our price is higher than others. We can guarantee that we will keep the most appropriate price because we want to expand our reputation of ACI THE MODEL CODE EXAMINATION practice test in this line and create a global brand about the products. What's more, we will often offer abundant discounts of our 3I0-002 quiz braindumps to express our gratitude to our customers. So choose us, you will receive unexpected surprise.

Online service from our customer service agent at 24 hours

When it comes to the service after sell, we may have some worries that we cannot have the privilege to enjoy the best service of our 3I0-002 study guide. You know, we sometimes meet such terrible thing that you cannot get immediate reply when asking customer service agents for help. But if you are our customers buying our 3I0-002 quiz torrent: ACI THE MODEL CODE EXAMINATION, you never worry about such a thing will happen. Because our company constantly follows the principle that customer above everything, we have the sense of high responsibility for every client. Once they need help or inquire about 3I0-002 quiz braindumps or the exam, you can contact us at any time, our customer service agents can be here at 24 hours in a day. We can promise that our customer service agents can solve your troubles about our 3I0-002 study guide with more patience and warmth, which is regarded as the best service after sell in this field.

Less time with high efficiency to prepare for this exam

As the modern time advances in a fast way, we can find that People's life pace is getting quicker and quicker. Thus people have a stronger sense of time and don't have enough time in participating in the ACI 3I0-002 exam. No matter for the worker generation or students, time is valuable. They almost cost most of the time in their work or are busy in dealing with other affairs, so spending much time on a ACI 3I0-002 test may make a disturb between their work and life. However if you trust us and buy our 3I0-002 quiz torrent: ACI THE MODEL CODE EXAMINATION, you just only need to spend 20-30 hours to practice 3I0-002 study guide and then you can feel secure to participate in this exam. We can make sure the short time is enough for you to achieve the most outstanding result.

Instant Download: Upon successful payment, Our systems will automatically send the product you have purchased to your mailbox by email. (If not received within 12 hours, please contact us. Note: don't forget to check your spam.)