Indian

Institute of
Banking & Finance

Certified Treasury Dealer

Enhancing Dealing Skills

Quality Printers (I) Tel. : 022 - 2492 2297

Certified Treasury Dealer

Outcome from the course :

The course will make available Certified Treasury Professionals in sufficient number,
with adequate theoretical knowledge, regulatory requirements, exposure and training
to handle the dealing desks at short notice.

Background :
The Institute is offering a Diploma in Treasury, Investment and Risk Management, jointly
with FIMMDA, having three papers since 2006. It is supported by dedicated courseware;
published in the form of a book prepared by practising bankers and backed by a state-of-
the-art e-learning provided by an International e-learning company based in USA. This
course has generated much interest among the bankers and 2272 persons have enrolled
for the same over the years. In addition, the Institute has introduced modules on Treasury
Management and Risk Management in the compulsory paper in CAIIB as also electives
on these two subjects separately. Thus the subject of Treasury and Risk Management has
been given a lot of emphasis by the Institute.

Further, the Institute has been offering training programmes in the areas of Treasury
Management, Risk Management and Compliance function at the Leadership Centre
(Kurla, Mumbai) of the Institute. The Institute has also offered customized certification
to the relationship managers of a foreign bank in the area of Forex Product advisory.
The Institute had also offered a customized e-learning backed certification on Treasury
Management to the employees of Reserve Bank of India a few years back.

The above certifications by the Institute can be classified as distance learning programs
albeit with latest subject inputs given through e-learning. An improvement over this
is the blended learning programs wherein in addition to the courseware (book published
by the Institute) and/or e-learning, the Institute also adds classroom learning such that
appropriate knowledge and skill inputs in the given vertical can be imparted. The Institute
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offers Project Management, Certified Banking Compliance Professional and Certified

Bank Trainer Program in such blended learning methodology. In these courses, the
candidate has to complete the courseware, appear and qualify in the examination by
scoring the threshold mark or more and then attend the training to complete the course
and be awarded the certification. An advantage in this method is that learning is more
intense and focused as all candidates possess good knowledge of the subject. The
performance of the candidate in the examination and training is evaluated which helps
in enhancing the quality of training and makes it more participative. These specialized
certificates are more appropriate in areas like Treasury, Training, Risk Management,
Compliance, Credit Appraisal and Wealth Management Advisory, where competency in
the given area is critical for the effective performance in the job.

In this background, the Institute had discussed the possibility of offering a joint
certification cum training programme with FIMMDA for treasury functionaries more
particularly dealers working in banks and financial institutions. Currently, the dealers
are provided with hands on training within the organization followed by bourse
programmes conducted by training bodies. As such, there is no formal qualification
offered by any institution in the country. Given the current emphasis on competency
based certification, it was felt that it is opportune to launch a blended certificate program
for dealers. It is also noticed that in the absence of an appropriate course, the competence
level of the dealers vary significantly which at times impact the overall dealing functions in
the financial sector.

Course Objective
● To create a cadre of well trained treasury dealers to handle the front office operations in
the integrated dealing rooms in banks / financial institutions.

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Coverage :
Course will cover the dealing functions in detail under seven modules viz.

● Financial Market & Role of Treasury

● Money Market Operations

● Investments

F
● orex Dealings

● Derivatives

● Model Code and Dealing Ethics

● Time value of Money & Interest rate calculation

Target group :
● Newly posted officers in the dealing room

● Persons identified for posting in the dealing room

● People aspiring to become dealers in future

Modalities :
a) Eligibility :

● Member of the Institute

● A graduate in any discipline

b) Course fee :

`6,000 plus taxes for the online examination. Course fee includes two attempts for the
examination. For every additional attempt, the fee will be `1,500 plus taxes.

c) Methodology :

Course will have two components viz.

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...Continued

● An online examination for 100 marks based on a specially prepared courseware on

the subject

● A classroom learning of 3 days in Mumbai

d) Mode :

The course will be conducted through distance learning process. IIBF will arrange
contact classes subject to availability of sufficient candidates.

e) Study Material :

The study material for the certificate course will be published and will be available
across the country.

f) Examination :

The proctored online examination for the certificate course would be conducted
by IIBF. Examination will be held twice a year in June and December on a Sunday.
Medium of examination will be English.

g) Class room learning :

Class room learning would be imparted at IIBF. The duration of the class room
learning will be 3 days. The fee will be `10,000/- plus taxes for non residential
training, training kit, and access to the Institutes library at the time of training.

● Candidates who score 50% or more marks in the online examination will be eligible
to attend the classroom learning

● Training calendar will be announced after the declaration of results. Candidates

will have to pay the fees and attend the training

● Training will be done by qualified experts / bankers for a duration of 3 days and
will include mock dealing sessions covering treasury functions. Training will include
exercises, case studies to evaluate the understanding and application of concepts
covered in the written examination. Inputs on various trading techniques, Interpretation
of market / economic data, Fundamental Analysis and Technical Analysis will be
provided.

h) Certification :

Passing in the online examination and completion of classroom learning is essential

for the award of the certificate.

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Proposed Procedure :
1. Admission for the course would be through online mode. Application Forms are to be
downloaded from the IIBF's website i.e. www.iibf.org.in. Eligible candidates to join the
course by paying the fees which include examination fee for the two attempts.

2. Candidates to study the prescribed courseware procured from the market.

3. Study time : 3 months study time after registration.

4. Candidates to appear for one paper MCQ based Online Exam - 100 Questions
including case based questions for 100 Marks in two hours.

5. Passing marks would be minimum 50 marks. In case a candidate is not able to pass
the exam within the first attempt, he / she can appear for the second attempt which
is covered in the course fee.

a. There will be no negative marks for the wrong answers. There is no system of grace
marks.

b. Examination will be in English and will be conducted on a Sunday, twice in a year in

June and December. The examination date will be announced by IIBF at least three
months before the examination.

Classroom Learning- Enrolment Procedure :

1. After passing the online examination, candidate has to log on to IIBF website and select
his / her convenient slot for class room learning (3 days) from the pre-determined dates
and venue put-up on the website by paying the fees for class room learning.

2. Candidates to attend class room learning in IIBF as per the slot selected.

3. Total Marks for class room learning will be 50 and passing marks is 25. Marks for
classroom learning will be awarded by faculty based on class room participation,
analytical skills, case discussions, dealing ability etc.

4. Candidates, who successfully complete the class room learning, will be eligible for the
Course Completion Certificate.

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Award of Certificate :
All the successful candidates will be awarded 'Certified Treasury Professional' citation
jointly by IIBF and FIMMDA, as mutually agreed.

First examination :
Registration for the examination will commence from July, 2014 and the first examination
will be held in October, 2014 (details will be available from-www.iibf.org.in).

For details contact

The Joint Director, (Administration and Marketing)
Leadership Centre,
Commercial-II, Tower-1,
Indian Institute of Banking & Finance
Kohinoor City, Kirol Road,
Kurla West, Mumbai - 400 070.

www.iibf.org.in

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 ANNEXURE
Module - I : Financial Markets and Role of Treasury
Financial markets, participants and Instruments, operating environment, regulations
and practices. Need for treasury and centralization Treasury management, Treasury
organization - Front Office, Back Office and Mid Office. Dealing systems and treasury
operations, Treasury as Profit Centre.
Module - II : Money Market Operations
Fund management, CRR maintenance, liquidity management, money market operations,
need for centralized funding operations, managing banks' surplus funds, bank level ALM
and maturity gap analysis. Market quotes in money market products, trading
opportunities in Money market, Repo trading. Arbitrage by running maturity mismatches-
role of Treasury in resource mobilizations- Overnight call money market. Repos and
Reverse repos, CBLOs, Marginal Standing Facilities, Certificate of Deposits, Inter-Bank
Participation Certificate, Refinance as source of funding, export refinance, NABARD
refinance, SIDBI refinance.
Module - III : Investments
Objectives of investments, Types of investments, Coupon and YTM concepts, Bond
market basics, bond pricing and yield calculation, accrued interest, clean and dirty price,
interest rate risk measures like Duration, PV01 and Convexity and hedging products.
Trading strategies and portfolio management. Dealing platforms and settlement systems.
Regulatory guidelines, maintenance of SLR, investment classifications, valuations and
provisioning.
Module - IV : Forex Dealings
Exchange rates and linkage to macroeconomic factors like Balance of Payment, Current
Account Deficit, Inflation, Interest Rate etc. Foreign exchange market participants, market
quotes – direct and indirect quotations, One way quote and both way quotes, Dealing
terminologies, Cash, Spot and forward rates, Concept of premium and discount in
currency forward market, handling merchant transaction, cover operations, open
positions, gap limits. Arbitrage through currency swaps operations. Dealing platforms and
settlement procedures. Currency trading strategies, fundamental analysis, interpretation
of market data, technical analysis. Role of brokers. Valuation of forex positions and gaps.
Risk management in forex operations observance of NOOP limits, Gap limits, limits on
overseas investments/ borrowings, funding rupee gaps through currency swaps, central
bank intervention in Forex market.
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...Continued

Module - V : Derivatives
Derivative: Nature, types, fundamentals, forwards, currency futures and options, interest
rate swaps and futures, concept of margins, Interest rate swaps and FRAs. Basic
understanding of duration, PV01 of swaps, Option Greeks. Use of derivatives to hedge
currency and interest rate risks. Valuation of derivative products, Hedge accounting and
Trading position in Derivatives. Credit derivatives - basic concepts and products. Risk
managements of Derivative product, current exposure, potential future exposures, hedge
effectiveness, RBI / FIMMDA guidelines.
Module - VI : Model Code and Dealing Ethics
Dealer's code of conduct, dealing through brokers, model market practices, dealing
ethics. Customer suitability and appropriateness. Code of conduct for contribution to
financial benchmarks, Code of Conduct for dealing on NDS-OM and the role of FEDAI and
FIMMDA.
Module - VII : Time Value of Money and Interest Rate Calculations
Calculation of present value, future value, discounting, compounding, simple interest, day
count conventions, money market and bond market basis, Forward rates, yield curves -
YTM, par yield curve.

Recommended reading - compulsory

No. Title Authored by Published by
1. Treasury Management Indian Institute of Macmillan `385/-
Banking & Finance
2. The Handbook of Fixed Income Securities Frank J. Fabozzi Tata McGraw Hill `950/-
Additional readings (optional)
No. Title Authored by Published by
1. Treasury Management Steven M. Bragg
2. Currency Exposures and Derivatives A. V. Rajwade McGraw Hill
3. Treasury Management in India V. A. Avadhani Himalaya Publishing House
4. Options, Futures and Other Derivatives John C. Hull Prentice Hall India `350/-
5. Technical Analysis Explained Martin J. Pring McGraw Hill `1075/-
6. Security Analysis and Portfolio Management Falguni H. Pandya Jaico `525/-
7. Commodity Derivatives Indian Institute of Macmillan `345/-
Banking & Finance
8. Fixed Income Securities : Valuation, K. N. Mukherjee NIBM, 2014
Risk and Risk Management
9. Emerging Money Market in India : S. V. Kuvalekar NIBM, 2007
Instruments, Participants and Regulatory
Framework

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About FIMMDA

The Fixed Income Money Market and Derivatives Association of India (FIMMDA),
an association of Commercial Banks, financial Institutions and Primary Dealers,
was incorporated as a Company under section 25 of the Companies Act, 1956 on
June 3rd, 1998.

FIMMDA is a 90 member strong representative body for the bond, money and derivatives
market players in India. Its membership includes Public Sector, Private Sector, Foreign
Banks, Financial Institutions and Life Insurance Corporation of India.

MISSION

FIMMDA represents Market Players and aids the development of the bond, money
and derivatives markets. Dovetailed with this mission are specific objectives such as :

● To function as the principal interface with the regulators on various issues that impact
the functioning of these markets.

● To undertake developmental activities, such as, introduction of benchmark rates and

new derivatives instruments, etc.

● To provide training and development support to dealers and support personnel at

member institutions.

● To adopt / develop international standard practices and a code of conduct in the

above fields of activity.

● To devise standardized best market practices.

● To function as an arbitrator for disputes, if any between member institutions.

● To develop standardized sets of documentation.

● To assume any other relevant role facilitating smooth and orderly functioning of the
said markets.

With the objective to educate the market participants FIMMDA conducts regularly
trainings and seminars on contemporary topics and issues.

(www.fimmda.org)

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About IIBF

Indian Institute of Banking & Finance (formerly Indian Institute of Bankers) was
established on 30 April 1928 as a professional body of Banks and Financial Institutions
in India on the initiatives of eminent bankers, businessmen and leading industrialists.
Over the years, IIBF has become the premier Institute for developing and nurturing
competent bankers and financial professionals in Banking & Finance, through a process
of education, training, examination, research, consultancy and continuing professional
development programmes.

Currently, the Institute has 5,01,095 individual members and 701 institutional members.
During the year 2012-13, 2,98,000 candidates appeared for JAIIB / CAIIB / DB&F and other
certificate / diploma examinations. The Institute is the largest of its kind in the world.

The pedagogy of Distance Learning offered by the Institute comprises : publishing

specific courseware and work books, holding classroom learning through accredited
institutions, organizing contact classes, conducting video classes, offering e-learning
through portal, organizing campus training etc.

The state of the art Leadership Centre located in the Institute's Corporate Office
complex has well designed classrooms, breakaway rooms, seminar hall and a library.
The ambience is conducive for effective learning. Courses currently on offer are given
separately.

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Various courses offered by IIBF
A. Flagship Courses
JAIIB
●

CAIIB
●

Diploma
● in Banking & Finance
B. Specialised Diploma Courses
Diploma in Treasury, Investment and Risk Management
●

Diploma in Banking Technology

●

Diploma in International Banking and Finance

●

Advance Diploma in Urban Co-operative Banking

●

Diploma in Commodity Derivatives for Bankers

●

Advanced Wealth Management Course

●

Diploma in Home Loan Advising

●

C. Certificate Courses (For Bankers)

Certificate in Trade Finance
●

Certified Information System Banker

●

Certificate in Anti-Money Laundering / Know Your Customer

●

Certificate in Quantitative Methods for Bankers

●

Certificate in Credit Cards for Bankers

●

Certificate Examination in Banking Oriented Paper in Hindi

●

Certificate Examination in SME Finance for Bankers

●

Certificate Examination in Customer Service & Banking Codes and Standards

●

Certificate Examination in CAIIB - Eleven Elective Subjects

●

Certificate Examination in IT Security

●

Certificate Examination in Rural Banking Operations for RRB Staff

●

Certificate Examination in Prevention of Cyber Crimes and Fraud Management

●

Certificate Examination in Foreign Exchange Facilities for Individuals

●

Certificate Examination in Microfinance

●

D. Certificate Courses (For IT Companies)

Certificate
● Examinations in Basics of Banking / Credit Cards / Functions of Banks for employees of
IT Companies
E. Certificate Courses (For Others)
Certificate Course for Business Correspondents / Business Facilitators
●

Certificate Examination for Debt Recovery Agents

●

F. Specialised Certificate Courses

Certified Bank Trainer
●

Certified Banking Compliance Professional

●

Project Finance Management blended Course with IFMR, Chennai

●

G. Management Course
Advanced Management Programme
●

H. MBA Course
CAIIB linked MBA with IGNOU.
●

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Awards won by IIBF in 2013-2014

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