[main_aisa_hoon]

hey guys, can u all tell me wats the eligibility for taking FRM

thnks!

[Tumtum]

Originally Posted by Crash_test_dummy

Hey TumTum...nice thread, lotsa useful info, although i've not read thru all of it.

I want to know your opinion on this: Will FRM be a good asset for a guy to pursue a career in derivatives or forex trading for a wall street firm? Will it be useful for stepping into the hedge fund field? I guess trading derivatives and forex would involve a lot of risk modelling, so knowledge of risk management will help there. Same goes for hedge fund management, i think. These are my own assumptions...wanna know from you if im correct. Also, for the above three fields (derivatives trading, forex trading, and hedge funds), how useful will the CFA be in comparison to FRM? As in, which of the two qualifications should a guy who wants to pursue one of the above three fields prfer?

Thanks in advance!

CTD. I will answer your questions in the order you put them.

1) Definitely YES. Trading, structuring and risk modeling are the prime applications for what you study in the FRM course. In fact the course has been built upon the premises that it becomes useful for these purposes. That explains why it is more quant than the more accounting stuff oriented CFA.

2) The FRM curriculum is reviewed every year by risk management industry leaders and since the last couple of years, the curriculum committee has been very proactive to begin including specifics of hedge fund risk management in the syllabus in order to keep it up to date. In fact if you look at Section 5 of 2007 Study Guide which I have posted in one of my previous posts, you will see that there is a separate section on “Hedge Fund Risk Management”. This is because now the hedge funds have begun employing many FRMs.

3) As for FRM vs CFA, well I don’t think there should be any comparison because both the courses are markedly different in focus and design. However, for your needs (derivatives trading, forex trading, and hedge funds), the CFA can frankly speaking, be compared to a sword- it is a good weapon to fight with but unfortunately it can’t stitch clothes, can it? No! In other words, going through the whole run of clearing 3 levels and waiting 3 years is not really required to get into the kind of roles you want. You can do it with an engineering degree and an FRM frankly. I have along with me, many guys from IITs and other good colleges who have gotten into such roles and are now pursuing FRM or have done a B.E + FRM combo and are at a good pay and package here.
So I definitely put a BUY rating on FRM looking at your needs. If however, you want to be a “research analyst” then you have no other choice but to go for the CFA.

Hope this helps !

[Tumtum]

Originally Posted by main_aisa_hoon

hey guys, can u all tell me wats the eligibility for taking FRM

thnks!

Graduation.

[Crash_test_dummy]

Originally Posted by Tumtum

CTD. I will answer your questions in the order you put them.


3) As for FRM vs CFA, well I don’t think there should be any comparison because both the courses are markedly different in focus and design. However, for your needs (derivatives trading, forex trading, and hedge funds), the CFA can frankly speaking, be compared to a sword- it is a good weapon to fight with but unfortunately it can’t stitch clothes, can it? No! In other words, going through the whole run of clearing 3 levels and waiting 3 years is not really required to get into the kind of roles you want. You can do it with an engineering degree and an FRM frankly. I have along with me, many guys from IITs and other good colleges who have gotten into such roles and are now pursuing FRM or have done a B.E + FRM combo and are at a good pay and package here.
So I definitely put a BUY rating on FRM looking at your needs. If however, you want to be a “research analyst” then you have no other choice but to go for the CFA.

Hope this helps !

Hey thanks for the excellent post.

So basically, in my case, going for CFA will be an overkill, is it? As in, im trying to do too much, when only a small subset of it is required....actually i shouldnt probably call it a subset coz FRM and CFA content dont necessarily overlap so much, do they? Since you've done FRM, can you temme what percentage of overlap is there, if at all? Are you suggesting that for the profiles i desire, i must drop the idea of CFA and instead choose FRM...im open to both courses, but would prefer to align with a course that is more in line with trading and hedge funds.

[main_aisa_hoon]

Hi everyone,
I intend to take FRM exam this november, but as per FRM requirements, they would not issue the certificate unless I have 2 years of work experience in the relevant area. At present, I have no work ex, so if I take the exam this nov, then what proof will I have that I have cleared this exam until I get the certi after completing 2 years in the relevant area.

Someone pls guide me

thanks!!:neutral:

[main_aisa_hoon]

hey thanks tumtum !

[Tumtum]

Originally Posted by main_aisa_hoon

Hi everyone,
I intend to take FRM exam this november, but as per FRM requirements, they would not issue the certificate unless I have 2 years of work experience in the relevant area. At present, I have no work ex, so if I take the exam this nov, then what proof will I have that I have cleared this exam until I get the certi after completing 2 years in the relevant area.

Someone pls guide me

thanks!!:neutral:

Hello MAH.

This is the very essence of a prefessional degree.
To be awarded one, you will have to satisfy the minimum relevant work-ex criteria. This is because the GARP or CFA Institute wants to build a strong coterie of professionals who possess these degrees and hence you will mostly find people who have relevant work ex opting for these courses.

In some cases though, you may definitely find the inexperienced ones or those haveing different experience pursuing these programs to gain an entry in these fields but then this gives lesser chances of success unless your undergraduate/masters background is very strong (IITs/IIMs/ISB/XLRI etc).

My suggestion, first complete whatever education you are pursuing and try to get a relevant job. If after working in that profile for a year, you still find that you want to pursue FRM as it is relevant to your job profile, then go for it.

Just dont rush into it because all are doing it. Hope you get the message.

[Tumtum]

Originally Posted by Crash_test_dummy

Hey thanks for the excellent post.

So basically, in my case, going for CFA will be an overkill, is it? As in, im trying to do too much, when only a small subset of it is required....actually i shouldnt probably call it a subset coz FRM and CFA content dont necessarily overlap so much, do they? Since you've done FRM, can you temme what percentage of overlap is there, if at all? Are you suggesting that for the profiles i desire, i must drop the idea of CFA and instead choose FRM...im open to both courses, but would prefer to align with a course that is more in line with trading and hedge funds.

CTD.

I make an educated guess in saying that CFA will be an overkill for the kind of jobs that you want to get into. However, just think ahead in time. Are these kinds of profiles the ones that you won't mind being into for the rest of your life? If the answer is yes, then you may well go for an FRM as your needs will be sufficiently met.

BUT BUT BUT, if the answer is NO, then I think you must go fo a CFA simply because it is wider in scope (vis-a-vis the FRM) and will only aid you better than an FRM if you want to get into equity research. (No matter what one argues but equity research is one of the key areas in which CFA has a dominant presence like no other designation).

Again, in areas of fund management and market risk/credit risk management, FRM scores equally well and the world's top MFs and Hedge Funds, private equity players increasingly employ FRMs too for such roles.

As far as overlapping of content is concerned, let me be very clear that it is in the areas of derivatives and some part of quantitative methods that you will find FRM and CFA curriculums to intersect, but rest of it is pretty different.
Also, CFA has a heavy basis (throughout the curriculum) in Accounting and FSA which is not the case with FRM. FRM is a bit more quant than CFA but then quants actually get a weightage of only 10% in the total FRM curriculum and hence FRM is a lot of reading with quant techniques interspersed into it.

Frankly speaking, I will not advise you regarding going for FRM or CFA or dropping one for the other. I can only give you a bird's eye view of what lies on store for you if you pursue some option. The decision is yours but yes, an educated guess certainly points out to the fact that CFA for the kind of roles you want AS of NOW, is definitely an overkill and FRM is more relevant.

Hope that helps.

[main_aisa_hoon]

Thanks TUMTUM for the info
however if I tell that I am currently studying at IIMA and doing my interns with one of the IB, then shud I go for it. Basically I believe it would be a gud value addition. I have 3 years of work ex, and 13 months experience as a trader in a stock broking firm. The thing that I am concerned about is the requirement of 2 years of relevant work experience. I have no probs if they hand me the certi after 2 years of relevant work ex, if during the mean time I HAVE THE PROOF THAT I HAVE CLEARED THIS EXAM.

Looking forward to your reply

Thanks!!

[Tumtum]

Originally Posted by main_aisa_hoon

Thanks TUMTUM for the info
however if I tell that I am currently studying at IIMA and doing my interns with one of the IB, then shud I go for it. Basically I believe it would be a gud value addition. I have 3 years of work ex, and 13 months experience as a trader in a stock broking firm. The thing that I am concerned about is the requirement of 2 years of relevant work experience. I have no probs if they hand me the certi after 2 years of relevant work ex, if during the mean time I HAVE THE PROOF THAT I HAVE CLEARED THIS EXAM.

Looking forward to your reply

Thanks!!

MAH.

You say that you already have got 3 years work-ex under your belt.
Was it financcial markets related? If yes then you have already met the criteria.
If not, then going by the logic that you were a trader for 13 months, you just have to get another 7 months of work-ex to be eligible. Isn't it?
In that case, your MBA schedule permitting, you should definitely go for it as it may aid you in final placements (if you go for it this year). If you decide to go for it next year, you will already have another 7 months experience by the time you complete the FRM and are awarded the certificate. Got it?
All the best !