Certificate in Derivatives
We will grant the Certificate in Derivatives to Fellows of the Institute and Faculty of Actuaries who can demonstrate that they understand the terminology and mathematical principles of derivatives and the markets they are traded in, and that they can value derivatives and manage the risks associated with a portfolio of them.
You will need to demonstrate you:
- understand the basic characteristics of derivative markets
- can define and describe a range of derivatives, including options, interest rate derivatives and exotic
- understand the principles of pricing options, futures and forwards
- understand the mathematics underpinning the pricing and hedging of derivative instruments
- understand how to hedge individual derivatives and portfolios of derivatives
- understand models of the term structure of interest rates
- are aware of the characteristics of different types of structured derivatives and synthetic securities that can be encountered in actuarial work
- can identify the credit and market risks that arise in the use of derivatives.
You will sit the ST6 exam, which is one three hour paper. ActEd supplies the course material.
Registering for exams
You can register if you're a Fellow of the Institute and Faculty of Actuaries. If you are a member of another actuarial association with equivalent qualifications you can also register, but you will first have to apply for Affiliate membership.
The application forms for this exam will be available, on the Exam registration page, in January each year for the April exam and in July for the September exam. You will need to pay the exam fee when you apply for the exam.