FAMILIARISATION PROGRAMME FOR TRADING REPRESENTATIVES (FPTR)
ASSESSMENT OUTLINE
For July to December 2020 FPTR II Assessments
Module 1
The Malaysian Stock Market
- The Capital Market and the Banking System Form the Financial System
- Capital Market Functions
- Malaysian Capital Market Framework
- Capital Markets & Services Act 2007 (CMSA)
- Bursa Malaysia Berhad (BMB) and Bursa Malaysia Securities Berhad (BMSB)
- Participants and Intermediaries in The Malaysian Stock Market
- Overview of The Islamic Capital Market
Module 2
Business Structure
- Range of business
- Classification of Companies
- General Management and Administration
- Administration and Management of a Participating Organisation
Module 3
Relationship between Participating Organisations (POs) and Clients
- Rules Governing Participating Organisation and Client Relationship
- Participating Organisations’ Duties to Clients
- Participating Organisations’ Rights
- Keeping of Records
- Obligations of CMSRL
Module 04
Types of Securities Offences
- Short Selling
- False Trading and Market-Rigging Transactions
- Stock Market Manipulation
- False or Misleading Statements in Relation to Securities
- Fraudulently Inducing Persons to Deal in Securities
- Use of Manipulative and Deceptive Devices
- Dissemination of Information about Illegal Transactions
- Insider Trading
Penalties for Contravention
Module 5
Anti-Money Laundering and Protection of Clients’ Information
- Guidelines on Prevention of Money Laundering and Terrorism Financing for Capital Market Intermediaries
- Obligation on Protection of Clients’ Information and Common Abuses on Confidentiality
Module 6
Capital Raising on the Primary Market
- Equity guidelines
- Bursa Malaysia Securities Berhad Main Market listing requirements
- Bursa Malaysia Securities Berhad ACE Market listing requirements
- Bursa Malaysia Securities Berhad LEAP Market listing requirements
- Post-Listing Requirements
- Capital Raising Securities in The Secondary Market
Module 7
Law of Contract
- What is Law of Contract?
- Essential Elements of a Contract
- Remedies for Breach of Contract
Module 8
Licensing
- Licensing Framework
- Fit and Proper Criteria
- Regulated Activities
- Licensing Requirements for CMSL and CMSRL
- Obligations of the Licensed Person
- Licence Conditions and Variation
- Revocation or Suspension
- Effect of Revocation and Suspension
- Obligations of Dealer’s Representatives
Module 9
Trading on Bursa Malaysia Securities Berhad
- Central Depository System (CDS)
- Automated Trading System (ATS)
- Bursa Trade Securities (BTS)
- Fees and Charges
- Delivery and Settlement
- Corporate Actions
- Modification and Cancellation
- Margin Financing
- The Fixed Delivery & Settlement System (FDSS)
- Delivery and Settlement Time for On-Market Transactions and Direct Business Transactions
- Circuit Breaker and Trading Halts
- Clients’ Rights
- Market Makers
- Conduct of Business (by a Participating Organisations)
- Dealing in Securities
- Direct Business Transactions
- Accounting, Audit and Financial Reporting Requirement
- Capital Requirement (of a Participating Organisations)
- Inspection and Investigation
- Disciplinary Actions
Module 10
Take-overs
- What are Take-Overs?
- Legal Framework
- Penalties for Contravention of the Code
Module 11
Overview of Fundamental Analysis
- Importance of Fundamental Analysis
- Economic, Industry and Company Analysis (EIC)
- Fundamental Analysis vs. Technical Analysis
Module 12
Financial Statement Analysis
- Component of Financial Statements
- Using Financial Statement Analysis to Assess Performance
- Various Techniques of Analysis
- Financial Ratios
- Advantages & Limitation of Ratio Analysis
Module 13
Equity
- Rights and Bonus Issues
- Equity Hybrids
- Convertible Unsecured Loan Stock (CULS)
- Warrants
- Equity Valuation
Module 14
Fixed Income and Money Market
- Fixed Income Valuation:
- Time value of money (Simple interest, Compound interest, Compounding and discounting techniques)
- Valuation of fixed income securities
- Bond Valuation
- Bond Pricing: Pricing of a Straight Bond, Zero Coupon Bond
- Factors Affecting Bond Price, Zero Coupon Bond
- Bond Yield: Current yield, Yield to Maturity, Yield to Call, Realised yield
- Relationship Between Price, Required Yield and Coupon Rate
- Term Structure of Interest Rates and Yield Curves
Module 15
Exchanged-Traded Funds (ETFs)
- What are ETFs?
- Structures and Types of ETFs
- Advantages and Risks of ETFs
Module 16
Technical Analysis
- What is Technical Analysis?
- Forecasting the Direction or Trend: Demand & Supply
- Bloomberg, Reuters, Trading Platform, Technical Analysis Software
- The Use of Trend:
- Types of Trends (Uptrends, Downtrends & Sideways/ Horizontal Trends)
- Trend Lengths
- Trendlines
- Channels
- Support and Resistance: Round Numbers; Role Reversal
- Chart Types
- Chart properties: time scale, price scale & price point properties
- Chart types: line (closing prices), bar (high, low, opening & closing price), candlestick (trading range & difference b/w open & close), point & figure (reflects price movements, not concerned with time & volume)