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Series 3

Series 3
CareersDegrees and CertificationsFinra Exams

What Is the Series 3?

The Series 3 is an exam, otherwise called the National Commodities Futures Examination, administered by the Financial Industry Regulatory Authority (FINRA) in the interest of the National Futures Association (NFA). Applicants who finish the exam are eligible to register with the NFA and sell commodity futures contracts and options on commodity futures contracts. The Series 3 is one of a number of exams for investment experts administered by FINRA, including the Series 7, General Securities Representative Exam, which is required for brokers who wish to sell corporate, government, or different types of securities.

How the Series 3 Works

The Series 3 exam covers points that commodities brokers need to be aware, like options, futures, hedging, and margin requirements, as well as market and regulatory rules. The exam comprises of 120 various decision inquiries in two parts, and applicants have two hours and 30 minutes to complete it. Not at all like the Series 7 exam, competitors needn't bother with to be sponsored by a firm to take the Series 3.

Competitors must accomplish a score of around 70% in each part to breeze through the exam. (There is no official pass rate, yet the widely accepted pass rate is around 70%.) Those who fail to finish might take the exam over once more, despite the fact that they might be subject to a waiting period. The exam costs $130.

Anybody who needs to sell commodity futures contracts must generally breeze through the Series 3 exam.

The NFA, a self-regulatory organization for the U.S. derivatives market, requires anybody "who is applying for NFA membership as a futures commission merchant (FCM), retail foreign exchange dealer (RFED), introducing broker (IB), commodity pool operator (CPO), or commodity trading advisor (CTA), leverage transaction merchant (LTM) or as a associated person (AP) of these elements, to fulfill capability requirements."

Much of the time, individuals seeking NFA membership or registration as an associated person must finish the Series 3 exam in the span of two years before they apply. That is except if:

  • The individual is as of now registered as a floor broker
  • The individual passed the Series 3 over two years going before the application and since that date has not had a continuous registration gap for over two years as an AP or FB or FCM, IB, CPO, CTA, or LTM who is a member of NFA.

To pursue any futures industry exams, an applicant must apply online at the FINRA website. Commonly, FINRA will inform straightforwardly the NFA that an individual has passed one of the futures industry exams. In certain conditions, notwithstanding, the NFA might request that competitors give proof that they passed.

Alternatives to the Series 3

As opposed to the Series 3, individuals might be eligible to take different exams and seek after other registration options in view of their registration status and the idea of the business they conduct. Those include:

  • Futures Managed Funds Examination (Series 31)
  • Limited Futures Examination-Regulations (Series 32)

Other certification exams connected with the Series 3 are the Series 30 (NFA Branch Manager Examination) and Series 34 (Retail Off-Exchange Forex Examination).

The Series 3 isn't viewed as an essential or corequisite for any of these different exams.

For additional data on the Series 3 and different futures industry exams, visit the NFA's Proficiency Requirements page. Furthermore, for additional subtleties on stepping through the examination, visit FINRA's On the Day of Your Qualification Exam resource page.

Features

  • As an alternative to the Series 3, there are several different exams individuals can take to become eligible to work in the commodities and futures markets.
  • Competitors who finish the Series 3 exam can register with the NFA to sell commodity futures contracts and options on commodity futures contracts.
  • The Series 3 is an exam administered by the Financial Industry Regulatory Authority (FINRA) in the interest of the National Futures Association (NFA), a self-regulatory organization for the U.S. derivatives market.