The National Stock Exchange (NSE) is one of the largest stock exchanges covering multiple cities across the country. Leading institutions took the initiative and set up NSE in order to provide a modern fully automated screen-based trading system with a national reach. NSE is known to bring about unparalleled transparency, speed along with efficiency, market integrity and safety. In terms of market microstructure, market practices and trading volumes, NSE has played a catalytic role in reforming the Indian securities.
The financial sector has a very critical aspect which is developing a pool of human resources having the right skills and expertise in each segment of the industry. To have such skilled and expert personnel there is a need for dispensing quality intermediation to these personnel working in the industry:
- Follow a certain code of conduct usually achieved through regulations
- Possess requisite skills and knowledge acquired through a system of testing and certification
The Need for Certification
With the advent of algorithmic trading, which has grown exponentially with a share of 46% of trades happening on the platform, in NSE alone. This upward trend in trading technology development has remained such since SEBI started allowing Direct Market Access facility way back in April 2008.
With a view of protecting investors & considering international experience; and for minimising risk arising from deficient understanding of markets, NSE has introduced certification & testing. A variety of new functions that need different levels and nature of specialization and orientation have emerged while the market has undergone a complete transformation in the recent years.
NSE’s Certification in Financial Markets; popularly known as NCFM is an online testing and certification programme. Skills and the practical knowledge needed to operate in financial markets are tested.
The certification test is offered to people from all walks of life who would want to do algorithmic trading or own an algorithmic trading desk. The technology of VSAT/leased line network across cities allows flexibility of dates, timings and provides easy accessibility and convenience to candidates.
There are various modules in NCFM covering a wide scope of trading verticals viz. mutual funds, equity derivatives, commercial banking, securities markets, banking fundamentals and capital markets fundamentals
However that wasn’t enough! Looking at the exponential transformation of the markets and technology, another unique module was introduced by NSE i.e Algorithmic Trading Module
Since QuantInsti is a pioneer institute in algorithmic trading education all over Asia, NSE invited QuantInsti to develop its algorithmic trading module of its NCFM certification. The workbook for NCFM developed by QuantInsti has been launched; an outline for which can be obtained here.
With that being said QuantInsti for the second time has successfully conducted Management Development Program (MDP) on algorithmic trading along with NSE. In the first MDP held in 2014 our faculty had shed light on various automated trading strategies, tools, performance evaluation techniques, portfolio management techniques, rules and regulations.