Canadian Securities Institute, Moody's Analytics Training & Certification Services
Mobile Menu

At CSI, the well-being of our valued learners and staff is our highest priority. Learn more about our response to COVID-19 and changes to our exam delivery format.

Futures Licensing Course (FLC)


Master the Futures Marketplace

What does this course cover?

The FLC focuses on the rules and regulations associated with futures trading including those of the IIROC, the Montreal Exchange and the CDCC. Students gain a strong conceptual understanding of futures products and the mechanics of trading. The FLC also covers the necessary steps to dealing with clients including:

  • Determining client suitability
  • Appropriate risk management strategies considering market outlook and risk tolerance
  • Standards of conduct when dealing with clients
  • Account documentation
  • Entering orders
  • Executing orders on exchanges
  • Payment for futures options or deposit of sufficient futures margin
  • Liquidation or roll-over of futures contract positions
  • Tax implications of futures trading

How will you learn?

CSI's online learning system helps you meet your study goals. You'll benefit from:

  • Textbook readings available in PDF, eBook and printed format
  • Online assistance from CSI's academic support specialists
  • Online post-chapter review questions to assess your progress
  • Learning objectives that keep you focused
  • Annual course updates to ensure you're learning the most current and up-to-date practical material

What's New

  • Updated Chapter 9 - Entering Futures and Futures Options Orders
  • Updated the Workbook, Glossary and online review questions accordingly

What you'll learn

  • Collapse All
  • |
  • Expand All

Topics covered in this chapter are:

  • Provincial Regulatory Framework in Canada for Exchange-Traded Futures and Futures Options

  • Self-Regulatory Framework in Canada for Exchange-Traded Futures and Futures Options

  • Canadian Investor Protection Fund

  • U.S. Futures Regulations

  • Classification of Canadian APPROVED Exchange-Traded Futures and Futures Option Participants and Their registration Requirements

Topics covered in this chapter are:

  • Long Futures Contract Strategy

  • A Brief Note on Futures Options

  • Long Call Strategy

  • Married Put Strategy

  • Covered Call Writing Strategy

  • Put writing strategy

  • A Brief Overview of Spreads, Straddles and Combinations

  • Bull Call Spread Strategy

  • Bull Put Spread Strategy

Topics covered in this chapter are:

  • Short Futures Contract Strategy

  • Long Put Strategy

  • Protected Short Sale Strategy

  • Covered Put Sale Strategy

  • Call Writing Strategy

  • Bear Put Spread Strategy

  • Bear Call Spread Strategy

Topics covered in this chapter are:

  • Short Straddle Strategy

  • Short Combination Strategy

  • Long Straddle Strategy

  • Long Combination Strategy

  • Option Time Spread Strategy

Topics covered in this chapter are:

  • Qualified Spread

  • Types of Spreads

  • Risks of Spread Trading

Topics covered in this chapter are:

  • Ethics

  • Standards of Practice

  • Money Laundering and Terrorist Financing in the Securities Industry

  • Trading and Sales Practices

  • Regulations Concerning Registered Futures Representatives Employed by SRO Members

Topics covered in this chapter are:

  • Opening a Futures Account

  • Completing and Approving the Futures Account Application Form

  • Completing the Futures Trading Agreement

  • Risk Disclosure Statement

  • Updating Client Account Records to Reflect Material Changes

  • Hedging Agreement

  • Managed and Simple Discretionary Accounts

  • Transferring Futures Accounts from One Dealer Member to Another

  • Commissions

  • Trade Confirmation

  • Monthly Statement

  • Statement of Purchase and Sale

  • Anti-Money Laundering and Anti-Terrorist Financing Regulations

  • A Day in the Life of a Registered Futures Representative

Topics covered in this chapter are:

  • Original and Maintenance Margin

  • Setting Margin Requirements

  • Hedge Margins

  • Satisfying Margin Calls

  • Comprehensive Margin Example

  • Margining a Futures Option Position

  • Dealer Member Capital Requirements

Topics covered in this chapter are:

  • Generic Futures Order Entry Screen

  • Types of Futures Orders

  • Generic Futures Options Order Entry Screen

  • Contingent Futures Options Orders

  • The Bourse de Montréal’s User-Defined Strategies Functionality

  • The Bourse de Montréal’s Procedures to Execute Riskless Basis Cross Transactions on Futures Contracts on S&P/TSX Indices

Topics covered in this chapter are:

  • Professional Versus Non-Professional Futures and Futures Options Traders

  • Tax Consequences for Non-Professional Traders

  • Tax Consequences for Professional Traders

Topics covered in this chapter are:

  • Opening Corporate Futures Accounts

  • Know Your Client Rule

  • Permissible Futures Transactions for Pension Plans, Insurance Companies and Trust Companies in Canada

  • Canadian Mutual Funds

Topics covered in this chapter are:

  • What Is a Clearing Corporation?

  • Canadian Derivatives Clearing Corporation

  • U.S. Futures Clearing Corporations

  • The Functions of a Clearing Corporation

Topics covered in this chapter are:

  • Physical Futures Exchanges

  • Electronic Futures Exchanges

  • The Structure of Futures Exchanges

  • Futures Order Flows

  • Creating and Listing New Futures Contracts

  • Setting Price Limits

  • The Rules That Govern Trading

  • Month-End Fair Value Procedures for Stock Index Futures

  • Margin Requirements

  • Publishing Volume and Open Interest Information

Topics covered in this chapter are:

  • Delivery Overview

  • Delivery Example

  • Delivery Process for Bond Futures Contracts

  • Cash Settlement

  • Exchange for Physical and Exchange for Risk

Topics covered in this chapter are:

  • Pitfalls of Trading in the Delivery Period

  • Futures Option Exercise and Assignment

Topics covered in this chapter are:

  • Features of CFDs

  • CFD Strategies

  • Regulation and Distribution of CFDs in Canada

Topics covered in this chapter are:

  • Supply and Demand Analysis

  • Types of Fundamental Analysis

  • How Government Programs and International Agreements Can Affect Prices

  • Major Limitations of Fundamental Analysis

Topics covered in this chapter are:

  • What is Technical Analysis?

  • Chart Analysis

  • Statistical Analysis

  • Sentiment Indicators

  • Volume and Open Interest

  • Seasonality

  • Combining Technicals and Fundamentals

  • Trading Systems and Risk Management

  • A Simple Trading System

What are the approximate hours of study?

Approximate Hours of Study**
Hours of Study 55 - 70 hours

** In order to provide some guidance to course participants as to the length of time it will take to be sufficiently prepared to write the final examination, CSI has prepared this estimate of the number of hours an average participant could possibly expect to spend studying for a course. Please note that these are only recommended hours of study developed based on research and our course content, however, this does not mean that some students with exceptional backgrounds would not take less time than recommended or that students with no background at all in finance or economics would not take longer than the maximum.

(weightings are approximate)
Regulation of Futures Trading in Canada 10%
A Review of the Risks and Rewards of Futures and Futures Options Strategies 10%
Opening and Maintaining Futures Accounts 40%
The Role of Clearing Corporations and Exchanges in Futures and Futures Options Trading 14%
Contracts for Differences (CFDs) 6%
Fundamental and Technical Analysis of Futures Markets 20%
Exams 1
Exam Format Proctored (remote or in person at a test centre)
Exam Length 1.5 Hours
Question Format Multiple Choice
Questions Per Exam 50
Attempts Allowed Per Exam 3*
Passing Grade 60% (Per Exam)
Assignments None
Enrolment Period 1 year

On successful completion of this course you will be able to download a Notice of Course Completion available through your student profile. This will remain on your profile as formal confirmation of course completion.

CSI will mail you a wall certificate within 4 - 6 weeks of course completion. Frames to display your certificate are available. Please ensure that your First and Last Name on your profile match your First and Last Name on your Government Issued Photo identification - this will ensure you receive an accurate certificate.

CSI will be pleased to issue an Honors Certificate to all student who obtain a final course mark of 85% or higher.

* The first attempt is included in the course enrolment fee. Further attempts incur fees.

†Please note: Access to your online materials will close 2 weeks after successful course completion or course expiry (whichever comes first). This course can be extended by 1 year provided you have not exceeded the attempts allowed  for each exam. You can view CSI extension fees here . Your enrolment period can only be extended one time.

Continuing Education (CE) Credits

Click the links below or the buttons at the top of the page on the right side to access CE accreditation information. To search for specific course information, press Ctrl + F and then enter the course name to search the document for the information you are interested in.

National/Provincial (Excluding Quebec)
Download CE Chart (PDF, 163 kb)

Quebec (IQPF/CSF)
Download IQPF/CSF Chart (PDF, 182 kb)

Please note: While CSI makes every effort to ensure that the information is up-to-date, we are unfortunately unable to fully guarantee its accuracy. The information listed in the charts above may be subject to change.

For details on the organizations and other information on CE Credits listed in the above charts, please click here.