Innovation & Change Management Flashcards
7 cards from real Series 3 – The National Commodities Futures Test practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Innovation & Change Management flashcards as text
Which 2010 law greatly expanded CFTC oversight to include the previously unregulated over-the-counter swaps market?
Answer: Dodd-Frank Wall Street Reform and Consumer Protection Act
Title VII of the Dodd-Frank Act brought swaps under CFTC and SEC regulation.
A swap execution facility (SEF) was created under Dodd-Frank primarily to do what?
Answer: Provide a regulated trading platform for swaps
SEFs are regulated platforms where swap participants can execute or trade swaps.
How does central clearing of standardized swaps through a derivatives clearing organization mainly reduce systemic risk?
Answer: It replaces bilateral counterparty credit risk with the clearinghouse as counterparty
The DCO becomes the buyer to every seller and seller to every buyer, mutualizing counterparty risk.
What is the contract multiplier of a Micro E-mini S&P 500 futures contract?
Answer: $5 times the index
Micro E-minis are one-tenth the size of E-minis, which use a $50 multiplier, so the multiplier is $5.
Why do swap data repositories (SDRs) receive reports of swap transactions?
Answer: To provide regulators and the public with transparency into swap market activity
SDRs centralize swap data to improve regulatory oversight and market transparency.
A designated contract market (DCM) wants to list a new futures contract. Which route is available under the Commodity Exchange Act?
Answer: Self-certification to the CFTC that the contract complies with the Act
A DCM may self-certify a new contract, or alternatively request CFTC approval.
Which development most directly shifted futures trading away from open outcry pits?
Answer: Growth of electronic order matching platforms
Electronic matching engines replaced most pit trading with faster, more transparent execution.
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Sources & references
Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy
- finra.org — Score release, test dates, test delivery, fees, exam format, passing score · verified Oct 2026
- nfa.futures.org — Eligibility, score validity · verified Oct 2026