Series 34 Exam Presentation

For an audio version of this presentation, please go to www.series34exam.com Series 34 Exam Retail Off-Exchange Forex Examination By Bart Mallon, Esq. www.series34exam.com

Overview
Background – Forex Registration
Series 34 Basics
Sections and Weighting
Major Exam Topics
Recommended Study Techniques
My Thoughts on the Exam
Questions
Disclaimer
Page 1 of 9 © www.series34exam.com

Background - Forex Registration
Commodities Exchange Act
Regulation of commodities and futures trading
No previous regulation of Forex activities (except limited anti-fraud authority)
Farm Bill
Passed by Congress on May 22, 2008
Major items with regard to off-exchange forex
Codifies CFTC’s anti-fraud authority
Requires registration for Forex CTAs, CPOs, IBs
Minimum capital requirements for FCMs and FDMs
New Forex Regulations
To be proposed by CFTC
Subject to comment period

Series 34 Exam Basics
Who?
Principals and Associated Persons of a Forex CTA, Forex CPO, or Forex Introducing Broker
What?
Number of Questions: 40 True/False and Multiple Choice
Time: 1 hour
Passing Score: 70%
Subject Matter: Retail Off-Exchange Forex
Cost: $70
When?
Tests can be scheduled anytime
Where?
Pearson and Prometric Testing Facilities
How?
Submit online Form U-10 through FINRA website (no sponsor is needed)
Select exam time on Pearson or Prometric website
Why ?
The CFTC is likely going to require forex managers to pass a proficiency exam. The NFA has designated the Series 34 as that proficiency exam.

Sections and Weighting Page 4 of 9 © www.series34exam.com

Major Exam Topics
Definitions and Terminology (10 questions)
American/European Terms
Currency pair, exchange rate, currency crosses, cross rates
Interest rate parity
Forex Trading Calculations (8 questions)
Profit and loss calculations**
Cross rate transactions
Pip values
Effects of leverage calculations
Risks Associated with Forex Trading (4 questions)
Credit Risk
Country Risk
Exchange Rate Risk
Interest Rate Risk
Forex Market - Concepts, Theories, Economic Factors and Indicators, Participants (10 questions)
BOP, BOT, current account, capital account
Forex clearing – CHIPS, fedwire
Central bank activities – interventions, sterilized interventions, discount rates
Elasticity of exchange rates
Fisher effect, international Fisher effect
Purchasing power parity
Forex Regulatory Requirements (8 questions)
NFA Interpretive notices: Forex Transactions, Rule 2-36(e)
Know your customer
Promotional material
Security deposit rules

My Thoughts on the Exam
My scores
Definitions and Terminology 7 of 10 (70%)
Forex Trading Calculations 6 of 8 (75%)
Risks Associated with Forex Trading 3 of 4 (75%)
Forex Market - Concepts, Theories, Economic Factors and Indicators, Participants 6 of 10 (60%)
Forex Regulatory Requirements 8 of 8 (100%)
Total Correct – 30 of 40
Time to complete the exam – approximately 42 minutes
Calculation heavy
Be prepared to use the calculator on the exam (approx. 5 questions)
Don’t spend too much time on any one question
Note on Pacing
Other
Shorting currency pairs
Current account, capital account, balance of trade, balance of payments
Regulatory questions pretty straight forward
Blog post: http://www.hedgefundlawblog.com/passing-the-series-34-exam.html

Recommended Study Techniques
Same techniques used to pass Series 3 exam
Read a study guide
Notecards
Drill exam prep questions
Review night before; study notecards before

Questions/ Issues to Consider
What happens if I don’t pass?
I have been an AP since May 22, 2008. Do I still have to register?
Do I need a sponsor to sign up for the Series 3 exam or the Series 34 exam?
When do I need to take the exam by?

Disclaimer
This presentation was made for informational purposes only.
I am not providing legal advice to any user.
This presentation does not establish an attorney-client relationship between myself and the user.
Any discussion herein is not a substitute for seeking actual legal advice from a licensed attorney with knowledge of the rules and regulations governing the industry.
I make no representations, guarantees, or warranties as to the accuracy, completeness, currency, or suitability of the information provided via this presentation.
This may be considered to be “attorney advertising” in some jurisdictions.
© www.series34exam.com Page 9 of 9

For voice presentation, please see:
www.series34exam.com
Please send questions, comments or suggestions to
Bart Mallon, Esq. at bartmallon@gmail.com
Other helpful websites:
www.forexregistration.com
www.hedgefundlawblog.com
www.forexlawblog.com

Series 34 Exam Presentation

by Bart Mallon on Apr 11, 2009

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Series 34 Exam Presentation — Presentation Transcript