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Cyber Security: Safety, Compliance or Both?

Uncategorized

October 29, 2020

2 min read

Cyber Security: Safety, Compliance or Both?

Good security protects against cyber threats. Regulatory compliance protects your business too. NFA Interpretive Notice 9070 sets the requirements and guidelines for an effective security program that meets both cyber security protection and compliance goals. Cyber Security or Compliance? Some executives are unsure if their cyber security program should be compliance driven or security focused. Being secure and in compliance are not the same thing, but NFA 9070’s requirements and guidelines help member firms achieve both. This article summarizes some key elements of NFA 9070. Written ISSP Member firms are required to have a written document that describes their Information Systems Security Program (ISSP) and designates the executive responsible for it. The ISSP and its implemented controls must be documented, and must be reviewed at least annually for effectiveness by someone with appropriate security expertise (internal or external). Security Actions and Safeguards After considering technology risks and their possible impact,...

Cyber Security Update - October 2020

Work from Home has moved the front-line in cyber attacks from office desks to kitchen tables, and NFA member firms are responsible to follow the security guidelines of NFA 9070 no matter where they do business. Based on insurance claims, ransomware attacks and false-invoice scams are among the most common cyber crimes in 2020, with phishing emails and fake website links the most frequent paths for malware. The following steps will help you stay secure: Be very suspicious of email or website links you don’t recognize, and even be cautious of those that look familiar - it is simple for hackers to impersonate people and sites. Be very careful with work emails asking for urgent payments, especially if they provide new payment instructions. If you can, call to confirm. Turn on 2 Factor Authentication whenever possible. This sends a confirmation email or text when you login to a system, which...

Chairman's Letter July 2020

Dear Members - As we approach our 30th Anniversary Year, NIBA will look a bit different! Every one of us - IB, CTA, FCM or Service Provider, is crazy busy right now. Working remotely has presented its own challenges and opportunities. NIBA’s mission has always been to make sure you get the information and education you need to meet challenges, recognize opportunities and keep your business growing. NIBA Members have a right to be proud of the Association. At 30-years young, NIBA’s online broker listing is the place potential customers look to when they need a futures or options professional. Additionally, NIBA is among the first to be contacted when regulators want to talk about changes or updates to rules and policies. Although we’re not able to get together at our annual joint DePaul Symposium or catch-up at Rivers with a cocktail after our fall conference, NIBA continues our regular...

Midland Trust on Investor Sentiment

What Midland is seeing? As Director of Business Development at Midland Trust, the question that I am getting from everyone I speak to is, “what are your clients doing?”. Insight into investor sentiment is on everyone’s mind in financial services and wondering if they can still attract investors for their investment product. Midland Trust is a leader in providing IRAs for individuals to invest in alternative investments, such as hedge funds, commodity trading strategies, private equity, venture capital, real estate, and much more. Through all my discussions with investment managers and individual investors, I’m hoping to share some insight that you may find interesting. Back in mid-March when the Covid-19 lockdowns started to heat up and markets tanked, we at Midland didn’t know what to think. We had all the same questions that you had at that time with no idea how to prepare. Over the next couple of weeks...

Analysis of CFTC No Action Letter 20-15

Over the past several months, in ways we never could have imagined, our lives and businesses have changed due to the Coronavirus disease, COVID-19. The global pandemic declared in March 2020 by the World Health Organization has wreaked havoc on all lines of businesses, small and large, across the globe. The futures industry is no exception. Our industry is impacted by the state and local mandated quarantines, and the volatile markets resulting from the vast amount of uncertainty. Thanks to swift actions by our regulators, there has been relief provided to some of the regulatory requirements faced by many, if not all, CFTC registrants and NFA Members. One recent action was taken by the Division of Swap Dealer and Intermediary Oversight (“DSIO”) of the CFTC on April 13, 2020 (CFTC Letter No. 20-15) that came about in response to a joint request from the Futures Industry Association and NIBA on...

NIBA COVID Cyber Security Update by vSEC LLC

The COVID crisis is providing cover and distraction for many cyber attacks. Threats include criminals impersonating the CDC and other official groups to get people to click on links that automatically download malware, fraud attacks that take advantage of market disruptions and ‘Work From Home’ confusion to steal personal information or money, and a general risk that home computers and networks often have fewer security protections than those at work. Here are some suggestions for each. Impersonation Risks You may recognize the person sending you a message (but their email may have been hacked or spoofed), you may recognize the name of the organization (the name may be spoofed), or you may recognize the topic (“emergency credit line request”, “covid test results”). But - be suspicious and be careful. Rather than click on an attachment or link, for public information try to find it yourself via a Google search. Examine...

NIBA Happenings 2020

Best Wishes for a Healthy and Prosperous New Year from the NIBA! Join us throughout 2020 for educational, informative and actionable events: April 22 - New York Athletic Club, NYC (Register NOW!) July 16 - Joint Symposium/DePaul University, Chicago October 1 - Fall Members Confererence, IIT, Chicago Watch for NIBA Newsletters, Regulatory Updates and White Papers/Articles on the NIBA website - theniba.com, in your email box and on social media. Since 1991, NIBA has represented registered derivatives professionals, providing the education you need to help you service your clients, stay in compliance and grow your businesses. Mark your calendar now to keep learning and growing with the NIBA.

NFA Launches Redesigned BASIC Tool

NFA's BASIC system is a free due diligence tool on NFA's website that allows the public to research the background and history of firms and individuals in the derivatives industry. Originally launched in 1999, BASIC contains current and historical CFTC registration and NFA membership information, NFA Member futures commission merchants' financial data, and NFA, CFTC and Exchange-contributed regulatory information, among other details. On average, there are nearly 200,000 BASIC searches performed each month. In response to feedback collected from BASIC users, NFA launched its updated BASIC system in August 2019. The rebuild incorporates mobile responsiveness, a more robust search, improved navigation and a modern, intuitive user interface. Click here to perform a BASIC search.

How Cash-Settled Fertilizer Futures Work

Read an overview of cash settled futures, including a comparison to physical delivery, a look at daily settlements, and more. Read Now Here

NIBA Celebrates its 28th Annual Fall Meeting!

Thanks to all who helped make NIBA’s 28th Annual Fall Meeting a success. IIT, Stuart School of Business proved to be a great venue for the full-day of industry experts, exhibit hall sponsors and networking with old and new friends. Thank you to the event sponsors: IIT, Stuart School of Business CME Group Michael Coglianese, CPA Dorman Trading Greenberg Traurig Law Liccar CPA Midland IRA Nanhua USA Ruddy Gregory Law Quick Silver Studios This year’s Exhibit Hall included: Barchart, CME Group, Main St. Data, Midland IRA and the Small Exchange. Electronic take-home bags have been distributed to all registrants. A video of the program will be posted on the NIBA website in the next few days. Big thanks to this year’s conference committee: Ryan Griffeth, Postrock Brokerage; Steve Petillo, Straits Financial; Katie Tervin, Zaner Group; Danny Dorman, Dorman Trading; Alan Bush, ADM Investor Services; Jeff Gilfilian, Phillips Capital; Melinda Schramm,...

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