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NIBA Journal

Insights, analysis, and updates from the National Introducing Brokers Association

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Questions Regarding FCM Failures and NIBA’s Role
Member Announcements
4 min read

Questions Regarding FCM Failures and NIBA’s Role

Dear NIBA Membership: The collapse of Peregrine Financial Group, Inc. (‘PFG’) represents the second time within nine months that a FCM failure accompanied by a shortfall in customer segregated funds has severely impacted the businesses of NIBA members. Many of you have asked why the PFG trustee has not distributed any funds, whereas the MF Global, Inc. (‘MFGI’) trustee made distributions early on in the bankruptcy and continues to make such distributions. You have also asked what role NIBA plays in both these situations. Second question first. NIBA is organized as a membership trade association. NIBA is mandated by its Bylaws to provide education and a forum for learning and networking in order to support the business efforts of the membership. Conferences, newsletters and communications with the CFTC and other regulators are some of the ways NIBA distributes the information and provides educational support. NIBA has been committed to this...

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Statement of the NIBA to the Technology Advisory Committee, CFTC
Member Announcements
5 min read

Statement of the NIBA to the Technology Advisory Committee, CFTC

July 25, 2012 Commissioner Scott O’Malia Three LaFayette Centre 1155 21st Street, NW Washington, DC 20581 Statement of the NIBA to the Technology Advisory Committee, CFTC Commissioner OʼMalia - Thank you and the CFTC Technology Advisory Committee for inviting the participation of the National Introducing Brokers Association (NIBA) in the conversation regarding the issues of the Committeeʼs meeting July 26, 2012. The NIBA was founded in 1991 as a non-profit association, whose mission is to support the business efforts of retail futures professionals through education, information and networking. Membership is open to Introducing Brokers (both IIB and GIB), Commodity Trading Advisors (CTAs) and Associated Persons (APs) registered in the futures, options and forex industries. In addition to IBs, CTAs and APs, NIBA members include nine FCMs, all domestic exchanges and 20 service providers. The NIBA Board of Directors members are elected from the membership of the Association, who then appoint...

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Chairman's Message | July 2012
Member Announcements
3 min read

Chairman's Message | July 2012

Dear Members - In our November 2011 newsletter I wrote: “The past three weeks have been the most frustrating, the most confusing, the most disappointing weeks I’ve spent in the 35 years I’ve been in the futures industry.” I never expected I would feel that way again. On July 9, two weeks ago, I was preparing for a trip to Washington, DC to meet with CFTC staff on several issues of concern to Association members, primarily the implementation of CFTC Rule 1.71 - Conflict of Interest. By the time I arrived at the Commission, the focus of our meetings had changed. Everyone wanted to discuss PFG. Most of us based in Chicago have met Russ Wasendorf, Sr. at one time or another. PFG was an NIBA member for a short period. When our Association would not back their efforts to have enhanced supervision and other responsibilities of the ‘tainted’ broker...

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Effective Date of NFA Financial Requirements Section 16 and the Related Interpretive Notice - FCM Financial Practices and Excess Segregated Funds/Secured Amount Disbursements
Member Announcements
11 min read

Effective Date of NFA Financial Requirements Section 16 and the Related Interpretive Notice - FCM Financial Practices and Excess Segregated Funds/Secured Amount Disbursements

Notice to Members I-12-14 July 18, 2012 Effective Date of NFA Financial Requirements Section 16 and the Related Interpretive Notice - FCM Financial Practices and Excess Segregated Funds/Secured Amount Disbursements The Commodity Futures Trading Commission (CFTC) has approved NFA Financial Requirements Section 16 and the related interpretive notice entitled FCM Financial Practices and Excess Segregated Funds/Secured Amount Disbursements. As described below, NFA Financial Requirements Section 16 and the related interpretive notice impose new requirements on FCMs with respect to customer segregated funds and secured amount funds accounts and require reporting of specific information regarding financial and operational information on a monthly or semi-monthly basis. The CFTC has also approved a minor amendment to NFA Financial Requirements Section 4, which codifies the requirement that any FCM that violates CFTC Regulation 30.7 is deemed to be in violation of an NFA Requirement. These requirements are effective September 1, 2012. Although this Notice...

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Frequently Asked Questions - Trading Program Performance Calculations and Presentation by CTAs with Client Assets held at Peregrine Financial Group, Inc.
Member Announcements
4 min read

Frequently Asked Questions - Trading Program Performance Calculations and Presentation by CTAs with Client Assets held at Peregrine Financial Group, Inc.

July 17, 2012 Frequently Asked Questions - Trading Program Performance Calculations and Presentation by CTAs with Client Assets held at Peregrine Financial Group, Inc. As a result of the enforcement actions taken by NFA and the CFTC against Peregrine Financial Group, Inc. (PFG), and the firm's subsequent bankruptcy filing, NFA has received a number of questions from CTAs regarding how to calculate and present performance information for Trading Programs with client managed accounts that had trading positions and other assets held at PFG at the time of these actions. NFA is issuing this notice to address those frequently asked questions. 1. All of my managed client accounts were held at PFG. The exchange-traded open positions in those accounts were liquidated at the direction of PFG's clearing firm. I have not had control over the forex positions since July 10, 2012 and have been unable to liquidate any of those positions....

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New Filing Requirements - Segregated Investment Detail Reports
Member Announcements
3 min read

New Filing Requirements - Segregated Investment Detail Reports

Notice to Members I-12-11 June 27, 2012 New Filing Requirements - Segregated Investment Detail Reports Pursuant to NFA Financial Requirements Section 8, effective July 2, 2012, all NFA Member FCMs that hold customer futures and option segregated funds and/or foreign futures and foreign options secured amount funds will be required to file the Segregated Investment Detail Report (SIDR) as of the 15th (or the following business day if the 15th falls on a weekend) and the last business day of each month. The report is due by 11:59 P.M. Eastern time on the business day following the 15th and last business day of each month. The first SIDR under this requirement will report the information as of close of business on July 16, 2012 and must be filed by 11:59 P.M. Eastern time on July 17, 2012. SIDR requires an FCM to provide the following information as of the reporting...

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Guidance to NFA Member CPOs and CTAs that Operate or Advise Pools Pursuant to an Exemption under CFTC Regulation 4.13(a)(4)
Member Announcements
5 min read

Guidance to NFA Member CPOs and CTAs that Operate or Advise Pools Pursuant to an Exemption under CFTC Regulation 4.13(a)(4)

Notice to Members I-12-09 June 22, 2012 Guidance to NFA Member CPOs and CTAs that Operate or Advise Pools Pursuant to an Exemption under CFTC Regulation 4.13(a)(4) On February 24, 2012, the CFTC issued final rules amending CFTC Part 4 Regulations to rescind the exemption from registration available to CPOs offering certain qualifying pools under CFTC Regulation 4.13(a)(4). Although Member CPOs that currently operate a pool(s) pursuant to a 4.13(a)(4) exemption may continue to operate the pool pursuant to that exemption until December 31, 2012, those CPOs must determine whether the 4.13(a)(4) exempt pool qualifies for an exemption from registration under CFTC Regulation 4.13(a)(3) or whether the CPO will become subject to CFTC Part 4 reporting and disclosure requirements for that pool subsequent to December 31, 2012. Similarly, any CTA that advises a 4.13(a)(4) exempt pool pursuant to an exemption under CFTC Regulation 4.14(a)(8)(D) may only continue to advise that...

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Chairman's Message | June 2012
Member Announcements
3 min read

Chairman's Message | June 2012

Dear Members- The Answer: Communication, Communication, Communication. The Question: What’s the most important benefit of your NIBA Membership? The NIBA’s mission is to keep communication channels open between members, and between members and other industry participants, including regulators. The dialogue helps keep you informed and assures that your opinions are heard. This what the Association is doing this month: May 30 - NIBA filed a request for an extension of time to the CFTC for implementation and enforcement of Rule 1.71 - Conflict of Interest June 1 - CFTC granted NIBA’s request and extended enforcement for all IBs and FCMs for 60 days. (Request and CFTC letter found in this month's Newsletter.) June 2 - General Creditor Claims filing deadline in the MF Global Bankruptcy. June 5 - NIBA/CME Joint Webinar with Bryan Durkin, CEO of the CME Group as Guest Speaker and Mike Burke, Secretary of the NIBA as...

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Webinar at the CME | Darin Newsom, Telvent DTN Senior Analyst
Member Announcements
1 min read

Webinar at the CME | Darin Newsom, Telvent DTN Senior Analyst

Date: Tuesday, 26 June 2012 Time: 2:00pm CT Location: Attend Online or In person at CME Group Visitor's Center Theatre, 141 W. Jackson Blvd., 5th Floor, Chicago Telvent DTN Senior Analyst Darin Newsom will take a look at the Prospective Plantings report along with Quarterly Grain Stocks numbers, evaluating what the figures might mean for the markets going forward. Darin can provide analytical insight and commentary on all commodity markets, as well as the international and national events that move them. His commentary has been featured on CNBC's Morning Call and The Wall Street Journal Online MarketBeat. » REGISTER NOW

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Respected Energy and Commodity Analyst Phil Flynn joins The Price Futures Group, Inc.
Member Announcements
2 min read

Respected Energy and Commodity Analyst Phil Flynn joins The Price Futures Group, Inc.

CONTACT Susanna W. Jung Executive Vice President and Chief Operating Officer The PRICE Futures Group, Inc. Phone Number 800-769-7021 FAX Number 312-264-4303 Email Address sjung@pricegroup.com Website URL www.pricegroup.com Chicago, IL - June 1, 2012 The Price Futures Group, a division of Price Holdings, Inc., an employee-owned company, is very pleased to announce that Phil Flynn, internationally televised oil and commodity market analyst, and his team, are joining the firm. Phil is one of the world’s leading energy and general market analysts, providing investors, professional traders, and institutions with his up-to-the minute advice for over 25 years. Phil’s accurate and timely forecasts have come to be in great demand by industry and media worldwide. He is also a daily contributor to Fox Business Network where he provides daily market updates and analysis. Phil’s daily commentary is featured in Futures Magazine, International Business Times, 312 Energy, Enercast, among many others. Mr. Flynn...

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