What Is the Series 3?
The Series 3 is an exam, steadily known as the National Commodities Futures Examination, administered by the use of the Financial Industry Regulatory Authority (FINRA) on behalf of the National Futures Association (NFA). Candidates who transfer the exam are eligible to test in with the NFA and advertise commodity futures contracts and possible choices on commodity futures contracts. The Series 3 is one amongst reasonably a couple of exams for investment pros administered by the use of FINRA, in conjunction with the Series 7, Customary Securities Advisor Exam, which is wanted for brokers who need to advertise corporate, government, or other varieties of securities.
Key Takeaways
- The Series 3 is an exam administered by the use of the Financial Industry Regulatory Authority (FINRA) on behalf of the National Futures Association (NFA), a self-regulatory crew for the U.S. derivatives market.
- Candidates who transfer the Series 3 exam can test in with the NFA to advertise commodity futures contracts and possible choices on commodity futures contracts.
- As an alternative choice to the Series 3, there are a selection of various exams other people can take to grow to be eligible to art work inside the commodities and futures markets.
How the Series 3 Works
The Series 3 exam covers topics that commodities brokers need to know, identical to possible choices, futures, hedging, and margin prerequisites, along with market and regulatory rules. The exam consists of 120 multiple-choice questions in two parts, and candidates have two hours and 30 minutes to complete it. Against this to the Series 7 exam, candidates do not need to be backed by the use of an organization so to take the Series 3.
Candidates should achieve a score of spherical 70% in each and every section to transport the exam. (There is no respectable transfer price, on the other hand the extensively authorized transfer price is spherical 70%.) Those who fail to transport may take the exam over again, even supposing they may be subject to a able period. The exam costs $130.
Anyone who wants to advertise commodity futures contracts should normally transfer the Series 3 exam.
The NFA, a self-regulatory crew for the U.S. derivatives market, requires any individual “who is applying for NFA membership as a futures charge provider supplier (FCM), retail foreign currency echange dealer (RFED), introducing broker (IB), commodity pool operator (CPO), or commodity purchasing and promoting information (CTA), leverage transaction provider supplier (LTM) or as an similar person (AP) of the ones entities, to meet ability prerequisites.
Generally, other people looking for NFA membership or registration as an similar person should transfer the Series 3 exam within of 2 years faster than they follow. This is apart from:
- The individual is not too long ago registered as a ground broker
- The individual passed the Series 3 more than two years earlier the application and since that date has now not had a continuing registration hollow for more than two years as an AP or FB or FCM, IB, CPO, CTA, or LTM who is a member of NFA.
To sign up for any futures trade exams, an applicant should follow online at the FINRA internet web page. Most often, FINRA will notify without delay the NFA that an individual has passed probably the most futures trade exams. In some circumstances, on the other hand, the NFA may request that candidates provide proof that they passed.
Alternatives to the Series 3
Moderately than the Series 3, other people may be eligible to take other exams and pursue other registration possible choices in step with their registration status and the nature of the industry they conduct. Those include:
- Futures Managed Funds Examination (Series 31)
- Limited Futures Examination-Regulations (Series 32)
Other certification exams related to the Series 3 are the Series 30 (NFA Division Manager Examination) and Series 34 (Retail Off-Change Forex Examination).
The Series 3 is not thought to be a prerequisite or corequisite for any of the ones other exams.
For more information on the Series 3 and other futures trade exams, discuss with the NFA’s Talent Must haves internet web page. And for added details on taking the test, discuss with FINRA’s On the Day of Your Qualification Exam helpful useful resource internet web page.
