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Chairman Letter December 2015

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Dear Members - The NIBA was founded in June 1991. During the past 25 years, we have become known as the association who educates and speaks for the retail professional community. We have earned the respect of our regulators and our industry by participating in the rule- making process at both the CFTC and NFA, and submitting position papers on everything from ethics training requirements to increased transparency for FCM financial reports. As we enter our 25th Anniversary Year, NIBA will continue to represent your opinions.

You will also see some changes. Originally, the NIBA’s membership was almost entirely made up of Introducing Brokers. A few years ago Commodity Trading Advisors and inpidual Associated Persons were invited to join the association. Today about one-third of the membership is registered in the CTA category, either as a dual registration or stand-alone. CTAs and APs are represented on the board of directors alongside IBs. 

During the next year, you will see that shift in membership reflected in the topics presented at association conferences, in the articles posted in this newsletter and in a new logo. We will be known simply as NIBA - dropping the full name National Introducing Brokers Association, in favor of using our longtime acronym. 

In late November, the CFTC published its proposed new regulations relating to automated trading (AT). The proposed definition of AT is not limited to “high frequency trading” and does not define that term. But it does require risk controls, and annual compliance reports for market participants using algorithmic trading systems, which likely includes NIBA members. NIBA intends to submit a comment letter to the CFTC regarding the proposed rule. Please add your comments or suggestions by sending an email to me, melinda@futuresrep.com by December 31. 

Also in the news this month: Tom Sandy of Rice Dairy (IB) in Chicago was elected to Board of Directors for a 3-year term beginning November 2015. Paul Fry of Straits Financial (FCM) was appointed to serve as an additional FCM advisor to the Board. 

Best wishes for a healthy, happy holiday season and for a prosperous New Year, 

Melinda Schramm, Founder & Chairman 

melinda@futuresrep.com

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