1. ACI Dealing Certificate 002-101: exam overview

The ACI Dealing Certificate New Version is intended to establish core competence for professionals entering dealing rooms and related financial-market roles. Its scope spans both conceptual understanding and quantitative application. Candidates need to understand how markets work, how instruments are quoted and traded, how transactions are processed, and how professional conduct and risk controls support market integrity.

The exam brings together five topic baskets rather than isolating calculations in a separate section. This means a question may require you to combine a market concept with a calculation, date convention or interpretation of a quote. Learning definitions is necessary, but you should also practise applying them to short dealing-room situations.

What makes this exam distinctive?

The subject matter is close to the language used in financial markets. You may see terms such as bid and offer, base and quoted currency, value date, outright forward, swap points, discount yield, settlement, market-making, counterparty risk and market conduct. Small differences in wording can change the answer. Make a glossary in your own words and add a worked example to each quantitative term.

The five topic baskets also reflect the real transaction lifecycle. Market knowledge helps you understand the instrument; FX and rates knowledge helps you quote or calculate; derivative knowledge helps you assess the structure and exposure; and financial-market applications connect those decisions to operations, controls, risk and conduct.

2. How to prepare efficiently for ACI 002-101

Start with the official syllabus, then turn every action verb into a study task. If a topic says “distinguish,” write down the difference between the two concepts. If it says “calculate,” solve several examples with different numbers. If it says “explain,” practise a short answer that states the purpose, mechanism and practical implication.

Use a three-pass learning method

1. Pass one — Understand. Read each topic basket and learn its terminology. Focus on why an instrument exists, who uses it, how it is quoted and what risks it creates.
2. Pass two — Apply. Solve calculations without looking at the worked example first. Practise quote interpretation, cross-rates, forward rates, simple interest, present value, value dates and derivative payoffs.
3. Pass three — Test and repair. Complete timed practice, classify each error and revisit the exact concept behind it. Retest weak areas rather than repeatedly practising only familiar questions.

Keep an error log

For every missed question, record the topic, the incorrect assumption, the correct rule and a new example. Common error categories include reversing a currency pair, confusing bid and offer, using the wrong day-count basis, mixing up discount and interest rates, applying the wrong date convention, and overlooking the difference between a hedge and a speculative position.

3. Topic Basket One: Financial Markets Environment

This basket provides the context for everything else in the exam. Financial markets bring together borrowers, investors, dealers, intermediaries, central banks, corporations and other participants to transfer funds, manage risk, discover prices and provide liquidity. To answer questions confidently, understand both the purpose of markets and the structure through which transactions are arranged, executed and settled.

Market types and their functions

Regulated markets and OTC markets

Regulated exchanges operate under formal rules for trading, clearing, reporting and market supervision. Over-the-counter (OTC) markets involve transactions arranged directly between counterparties or through dealers and platforms. OTC products can be tailored to a participant’s needs, but bilateral arrangements make counterparty exposure, documentation and operational controls especially important. Do not assume every product or transaction follows the same settlement or clearing model.

Market participants and market-making

Market participants have different objectives. Corporates may need currency for invoices or wish to hedge future cash flows. Asset managers invest on behalf of clients. Banks and dealers provide pricing, liquidity and risk intermediation. Brokers help participants find counterparties or execute trades. Central banks may implement monetary policy or manage reserves. Regulators oversee market conduct and applicable requirements.

A market maker provides two-way prices and stands ready to buy or sell within the terms of its quote. The incentive may include earning the bid-offer spread and providing a service to clients. Risks include adverse price movements, inventory risk, funding and liquidity pressures, operational failures and counterparty default. A market maker must manage exposure rather than assume the spread eliminates risk.

From execution to settlement

A financial transaction does not end when the trader agrees a price. The lifecycle can include pre-trade checks, execution, trade capture, confirmation, matching, clearing where applicable, settlement, reconciliation, reporting and ongoing risk monitoring. Front office generally focuses on pricing, execution and client activity; middle office supports independent risk oversight, valuation and controls; back office typically manages confirmation, settlement and reconciliations. Exact responsibilities vary by institution.

Market codes and regulations

Study the purpose and scope of the FX Global Code, Global Precious Metals Code and UK Money Markets Code. These codes promote good market practice and professional behaviour; understand their intended audience, leading principles and Statements of Commitment. Also learn the high-level objectives of relevant frameworks named in the syllabus, including MiFID II/MiFIR, the Market Abuse Regulation, Benchmarks Regulation, Dodd-Frank, EMIR and Basel frameworks. Focus on what each framework seeks to address and the types of activity or risk it concerns, not just the acronym.

4. Topic Basket Two: Foreign Exchange (FX)

FX is one of the most calculation-intensive parts of the syllabus. Build a clear mental model of currency-pair notation before attempting cross-rates or forward pricing. Always identify the base currency, the quoted currency, the direction of the transaction and whether the dealer is buying or selling the base currency.

Base currency, quoted currency, bid and offer

In a pair written as EUR/USD, EUR is the base currency and USD is the quoted currency. A rate of 1.0850 means one euro is priced at 1.0850 US dollars. In a two-way quote, the bid is the price at which the price maker buys the base currency; the offer (or ask) is the price at which the price maker sells the base currency. A price taker must interpret the quote from its own desired transaction, not simply choose the lower or higher number automatically.

Choosing the best quote

For a price taker, the best quote depends on the transaction. If you need to buy base currency, you generally compare offers and prefer the lower offer, all else equal. If you need to sell base currency, compare bids and prefer the higher bid. Always verify that the quotes are comparable in size, settlement date, credit terms and other relevant conditions.

Cross-rates and reciprocal rates

A cross-rate derives a rate between two currencies using rates that share a common currency. The arithmetic depends on how the two quoted pairs are arranged. Before multiplying or dividing, write each rate as a relationship between currency units and cancel the common currency. This dimensional-analysis approach is safer than memorising one multiplication rule.

A reciprocal rate is the inverse of a single exchange rate. For example, if EUR/USD is 1.2500 as a single indicative rate, its reciprocal USD/EUR is 1 ÷ 1.2500 = 0.8000. With a bid-offer quote, inversion also reverses the sides: the reciprocal bid is derived from the original offer, and the reciprocal offer from the original bid.

Spot, outright forwards and FX swaps

A spot FX transaction exchanges currencies for the agreed spot value date under the market convention for the pair. An outright forward agrees an exchange today for settlement on a future date. Its forward rate reflects the spot rate adjusted for the interest-rate differential and the relevant day-count conventions. An FX swap combines a near exchange with an opposite exchange on a later date, often to manage funding or roll a currency position. A forward-forward swap involves two future value dates.

Forward points and benchmark fixings

Forward points express the difference between the spot rate and the outright forward rate under the market’s quoting convention. Adding or subtracting points depends on how they are quoted and the direction of the price. Do not assume the points are always added. Benchmark fixings provide reference rates at defined times and under defined methodologies; learn their purpose and the role they play in valuation, execution or contractual settlement.

5. Topic Basket Three: Rates — Money and Interest-Rate Markets

The rates basket combines instrument knowledge with quantitative work. Learn how money-market instruments raise or place short-term funds, how they are quoted, how interest accrues, and how calendar conventions determine maturity and value dates. The details can differ by instrument and currency, so follow the convention specified in the question.

Money-market instruments

Money-market instruments support short-term funding and liquidity management. Their characteristics may differ by transferability, security, issuer, investor, return structure and quotation method. A deposit may pay interest at maturity; a discount instrument may be issued below face value and redeemed at face value. A certificate of deposit is a bank deposit instrument that may be transferable depending on its structure and market. Commercial paper is generally a short-term funding instrument issued by a company, while treasury bills are short-term government securities.

For each instrument in the syllabus, build a comparison sheet: typical issuer/borrower, investor/lender, maturity range, secured or unsecured nature, transferable or not, quotation basis, return mechanism and key risks. Avoid applying one instrument’s quotation convention to another without checking.

Simple interest, discounting and compounding

Simple interest is commonly expressed using principal, annual rate, the number of days and an annual day-count basis. A generic form is:

The annual basis might be 360 or 365 days, or another convention specified for the currency or instrument. Always check whether the rate is expressed as a decimal or percentage and whether the problem specifies actual days or another day-count rule.

Present value discounts a future cash flow back to today. Future value compounds a present amount forward. With simple interest, a generic accumulation relationship is FV = PV × (1 + r × t), where r is the annual rate and t is the year fraction. The exact formula for a quoted discount instrument may differ; use the instrument’s convention rather than forcing every question into the same equation.

Value dates and business-day conventions

Same-day, next-day and spot value dates identify when currency settlement occurs. Forward value dates are agreed for future settlement. Calendar rules determine how a maturity date is adjusted when it falls on a non-business day. Under a following convention, the date moves to the next business day. Modified following generally moves to the next business day unless doing so crosses into the next calendar month, in which case the date is moved backward to the preceding business day. Preceding moves to the prior business day. End/end rules and currency-specific holidays can add further detail.

Risk concepts

Operational risk can arise from people, systems, processes or external events. Legal risk relates to legal uncertainty, enforceability or disputes; regulatory risk concerns failure to meet applicable rules or supervisory requirements; reputational risk concerns damage to confidence and standing. These categories can overlap. For example, an operational error may create a settlement failure, trigger legal disputes and damage a firm’s reputation.

6. Topic Basket Four: FICC Derivatives

FICC stands for fixed income, currencies and commodities. Derivatives derive their value from an underlying instrument, rate, currency, commodity or other reference. They can help participants hedge exposures, manage funding or take a market view, but they also introduce leverage, valuation, liquidity, collateral and counterparty considerations.

Forwards and futures

A forward is generally an agreement between counterparties to transact an underlying at a future date under agreed terms. It can be tailored but introduces bilateral counterparty exposure. A futures contract is standardised and traded through an organised exchange structure, with margining and clearing arrangements governed by the market. Understand how standardisation, margin, settlement and counterparty arrangements differ.

Swaps

A swap exchanges cash flows according to defined terms. An interest-rate swap may exchange fixed-rate payments for floating-rate payments on a notional amount; the notional is generally used to calculate payments rather than exchanged itself. A currency swap can involve cash flows in different currencies and may include exchanges of principal. FX swaps are distinct in their common use of near and far currency exchanges. Read the contract description carefully before identifying the instrument.

Options and payoff thinking

An option gives its buyer a right, but not an obligation, to buy or sell an underlying at agreed terms. A call generally gives the right to buy; a put gives the right to sell. The buyer pays a premium for that right. A seller or writer receives the premium and takes on an obligation if the option is exercised. Review intrinsic value, time value, strike, expiry and the difference between the buyer’s and writer’s risk profiles.

Fixed-income and commodity exposure

Bond prices and yields are linked: all else equal, a bond’s price typically falls when its yield rises and rises when its yield falls. Duration provides a measure of sensitivity to yield changes, while convexity describes how that sensitivity changes as yields move. Commodity derivatives may be used by producers, consumers and traders to manage or assume exposure to price changes. Understand the economic purpose of a hedge and the possibility of basis risk when the hedging instrument does not perfectly match the underlying exposure.

For each derivative, learn the underlying, direction of exposure, payoff mechanics, typical use, key risks and whether it is generally OTC or exchange-traded under the syllabus context. Do not assume that every derivative with a similar name has identical settlement or collateral terms.

7. Topic Basket Five: Financial Markets Applications

This basket connects theory to practical market activity. You should be able to interpret common dealing terminology, understand transaction workflows and recognise how good market practice, controls and operational discipline apply to real situations. Read the exact current ACI syllabus for the detailed scope of this topic basket.

From market quote to completed transaction

A dealer receives a request, determines the relevant product and settlement details, obtains or provides a quote, agrees the trade, captures the transaction and ensures the details are confirmed. The institution then follows the applicable clearing and settlement process, reconciles records and completes required reporting. Each stage can introduce a different risk: an incorrect quote, miscommunication, a booking error, a failed confirmation, insufficient settlement funds or a reporting omission.

Trade details that must match

Depending on the product, trade details can include counterparties, instrument, direction, amount or notional, price or rate, trade date, value date, maturity, settlement instructions and any product-specific terms. A mismatch should be investigated and resolved through approved procedures. Never assume that a verbal agreement or a system entry alone proves that all downstream steps are complete.

Conduct and professional judgement

Good market practice requires honesty, clear communication, appropriate handling of confidential information, awareness of conflicts of interest and adherence to applicable rules. Codes such as the FX Global Code set out principles for professional behaviour and market integrity. A sound exam answer often recognises both the commercial objective and the control obligation: a trade should not be pursued by bypassing required checks or misrepresenting a price or status.

Operational controls and escalation

Controls can include segregation of duties, access management, independent confirmation, reconciliations, limits, exception reporting, change control and incident escalation. If a process fails, preserve relevant records, notify the appropriate team and follow the institution’s procedures. A junior employee should not attempt to conceal an error or make an unauthorised adjustment to force a transaction to balance.

8. Quantitative skills: a method for avoiding calculation mistakes

Quantitative questions are easier when you use a consistent sequence. First, identify what the question asks for. Second, list the given values and units. Third, choose the correct convention or formula. Fourth, calculate with a basic calculator. Finally, check whether the answer is plausible and expressed in the correct currency, rate or time unit.

FX amount calculations

For a single rate, if a base-currency amount is converted into the quoted currency, multiply by the exchange rate. If you know the quoted-currency amount and need the base amount, divide by the rate. In a two-way market, choose the bid or offer based on the transaction direction. For example, buying base currency from a price maker generally uses the offer; selling base currency to the price maker generally uses the bid.

Forward-rate calculations

Forward FX pricing reflects the spot rate and the relative interest rates of the two currencies over the relevant period. A generic relationship under simple-interest assumptions can be represented as a spot rate multiplied by the quoted-currency accumulation factor divided by the base-currency accumulation factor, depending on the pair convention. Use the exact formula and convention sheet supplied by ACI for the exam. If forward points are given, apply them to the spot rate according to the quote convention and verify the sign.

Present value and future value

For a simple-interest period, a generic future value is FV = PV × (1 + r × t). Rearranging gives PV = FV ÷ (1 + r × t). These are general relationships; discount instruments and specific money-market quotations may use a different convention. Practise identifying whether the rate is an interest rate or a discount rate before selecting the formula.

Worked practice example: simple interest

Suppose a hypothetical principal of 1,000,000 earns simple annual interest of 4.5% for 90 days using a 360-day basis. The year fraction is 90 ÷ 360 = 0.25. Interest = 1,000,000 × 0.045 × 0.25 = 11,250. The hypothetical maturity amount is 1,011,250 if interest is paid at maturity and no other cash flows or fees apply.

This example is for learning the arithmetic only. Actual instrument conventions, compounding, fees and day counts depend on the question and market.

Check your calculation method

• Did you use the correct currency pair direction?
• Did you choose the correct side of the bid-offer quote?
• Did you convert the annual rate from a percentage to a decimal?
• Did you use the specified day-count and annual basis?
• Did you distinguish interest from discount?
• Did you apply the correct sign to forward points?
• Did you check that the answer’s units make sense?

9. Market conduct, regulation and risk: what to understand

The syllabus references industry codes and a number of regulatory and prudential frameworks. The best preparation approach is to learn each framework’s purpose and scope at a high level, then connect it to the market activity or risk it addresses. The applicable rules depend on jurisdiction, entity, product and activity, so avoid treating one framework as universally applicable to every transaction.

Understand the relationship between risk categories

Market risk arises from changes in market prices or rates. Credit and counterparty risk concerns the possibility that a counterparty fails to meet its obligations. Liquidity risk can arise when a position cannot be closed or funded at a reasonable cost. Operational risk comes from failures in people, systems, processes or external events. Legal, regulatory and reputational risks may arise alongside these exposures. A single incident can affect several categories at once.

In scenario questions, look for the source of the problem rather than choosing the most familiar risk label. A pricing loss due to an adverse currency move is different from a settlement failure caused by an incorrect instruction, even if both ultimately cost money.

10. A practical 30-day study plan

This schedule is a suggested framework, not an official ACI timetable. Adjust it according to your experience, study time and diagnostic results. If FX calculations are new to you, spend extra days on currency-pair logic and forward rates. If you already work in a dealing room, focus on less familiar instruments, codes, regulations and the exact syllabus terminology.

1. Days 1–3: Review the syllabus. Download the current official syllabus and formula sheet. Make a tracker for all five topic baskets and mark each topic as strong, developing or unfamiliar.
2. Days 4–7: Financial Markets Environment. Study market types, participants, market-making, transaction lifecycle, codes and high-level regulatory purposes. Write short explanations in your own words.
3. Days 8–12: Foreign Exchange. Practise base/quoted currency, bid-offer interpretation, conversion amounts, reciprocal rates, cross-rates, spot, forwards, swaps and forward points.
4. Days 13–16: Rates. Compare money-market instruments, practise simple interest and present/future value, and work through day-count and business-day conventions.
5. Days 17–20: FICC derivatives. Compare forwards, futures, swaps and options. Review fixed-income price/yield relationships, commodity hedging and the risk profile of each instrument.
6. Days 21–23: Financial Markets Applications. Review trade lifecycle, booking and settlement, conduct, operational controls and the way errors are escalated.
7. Days 24–26: Mixed calculations and scenarios. Practise questions that combine a market concept with a quote, value date, instrument or risk consideration. Keep an error log.
8. Days 27–28: Timed practice. Complete a practice exam under time pressure. Review incorrect and guessed answers; do not count a lucky guess as mastery.
9. Days 29–30: Final revision. Revisit weak baskets, review the official formula sheet and definitions, confirm booking requirements and rest before the exam.

11. Interactive dealing-room scenarios

These are original learning scenarios, not actual ACI exam questions. Choose the best answer and read the feedback.

12. Knowledge check: test your understanding

Answer all eight questions, then check your score and explanations. These are original practice items created for this guide.

13. Final readiness checklist and FAQs

Frequently asked questions