NIBA - Celebrating 35 Years

NIBA Journal

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

NIBA Career Day Event @ DePaul University
NIBA Briefings
2 min read

NIBA Career Day Event @ DePaul University

The National Introducing Brokers Association continued its 35th anniversary celebration last month with a successful student-focused outreach event at DePaul University, bringing members of the futures and options industry directly into the classroom to engage with the next generation of market professionals. Approximately 45 students attended a panel discussion featuring industry practitioners who shared insights on building a career in the futures and derivatives markets, the wide range of professional paths available across brokerage, trading, risk management, legal and compliance, marketing and operations, and the skills that help young professionals succeed in a fast-moving global marketplace. Pictured from left: Dr. Peter Westin, Director, Arditti Center, DePaul University; Melinda Schramm, Founder & Chairman NIBA; Catie Lee, Director of Marketing, ADM Investor Services; Giancarlo Saraceno, Senior Commodity Broker, Edge Clear LLC; John Roe, Founding Partner, Roe Capital Management; Brian Poronsky, Partner, Katten Muchin Rosenman LLP The discussion emphasized both the accessibility and...

By NIBARead article
CARBON HUNTERS: Breaking the Mold
Resource Articles
3 min read

CARBON HUNTERS: Breaking the Mold

Written by Richard L. Sandor, Ph.D and Paula DiPerna Breaking the mold is the essence of innovation, as NIBA readers know well, and innovation is a journey that can lead just about anywhere. So we learned when we teamed up to launch the world’s first cap-and-trade system and transparent public exchange to address climate change, the Chicago Climate Exchange (CCX), and this is the story we tell in our new book, CARBON HUNTERS: Reflections and Forecasts on Climate Markets in the 21st Century (World Scientific Press). First individually and then as a team, our CCX journey led from Berkeley to Brazil, Chicago, and The Hague and Washington, D.C. from Beijing to Shanghai to Hong Kong, New Delhi to Bombay, and just about other every corner of the world. But CARBON HUNTERS embodies not only journeys across geographies of the world but also of the mindset, highlighting how fate and luck...

By NIBARead article
NIBA Rings CBOE Closing Bell – 35th Anniversary Celebration
Member Announcements
1 min read

NIBA Rings CBOE Closing Bell – 35th Anniversary Celebration

The National Introducing Brokers Association (NIBA) had the distinct honor of ringing the closing bell on the floor of the Chicago Board Options Exchange as part of our 35th anniversary celebrations. Surrounded by the energy and camaraderie of the trading floor community, NIBA Chairman, Melinda Schramm and NIBA board members marked this milestone by participating in a time-honored market tradition that symbolizes the close of trading and the collective spirit of our industry. This moment not only highlights NIBA’s enduring role in the futures and options markets but also reinforces the deep connections we share with the broader trading community — a vibrant network of professionals committed to growth, integrity, and innovation. Watch the video below to relive this special moment!

By NIBARead article
Special Alert: Introducing Brokers will be featured at FIA EXPO 2025
Member Announcements
1 min read

Special Alert: Introducing Brokers will be featured at FIA EXPO 2025

FIA Futures and Options Expo returns to the Sheraton Grand Chicago Riverwalk November 17 & 18th. SPECIAL ALERT: For the first time in several years, Introducing Brokers will be featured at EXPO. On Tuesday, November 18, 3:15pm IBs will present a panel you don't want to miss! Introduced by Melinda Schramm, President of MHS Capital Resource and Founder & Chairman of the NIBA, the panel includes: Morad Askar, EdgeClear Elaine Levin, Powerhouse TL Steve Petillo, Pinion Global Abbey Wilkins, Sweet Futures Matt Kluchenek, Katten Muchin This panel will discuss how Introducing Brokers are viewing and meeting industry and technology changes that are impacting our relationships with our customers, our FCMs and our trading platforms. Click here to view the full 2025 FIA EXPO Program To learn more about the Introducing Broker session contact Melinda, melinda@futuresrep.com. NIBA is proud to be an Association Partner of FIA Conferences.

By NIBARead article
From the Classroom to the Trading Floor
Member Announcements
5 min read

From the Classroom to the Trading Floor

There is no single, clearly defined education path for entering the derivatives industry as professionals come from a range of academic backgrounds. Still, higher education plays a crucial role in preparing students for success in this complex and fast-evolving field. A strong foundation in finance, economics, and mathematics is essential. At the undergraduate level, students should prioritize courses in financial markets and institutions, investment analysis, corporate finance, and introductory derivatives. Just as important are courses in statistics and calculus, which help build the analytical and quantitative skills required for understanding pricing models, volatility, and risk management strategies. With the increasing reliance on algorithmic trading and quantitative research, a concentration or minor in applied mathematics, data science, or computer programming can provide a competitive edge. Where Futures Are Forged: DePaul Alumni making a footprint DePaul University boasts a strong track record of alumni who have gone on to hold prominent positions...

By NIBARead article
From Insight to Impact: Building a Risk-Smart Community
Member Announcements
5 min read

From Insight to Impact: Building a Risk-Smart Community

With a more complex global environment and continuous financial innovation, new and more sophisticated areas of risk have emerged. At the same time, rapid advances in artificial intelligence (AI) and machine learning offer powerful opportunities for private sector firms and financial institutions to enhance their risk management capabilities. Honoring a Legacy: The Founding and Mission of the Arditti Center Founded in 2006, the Arditti Center for Risk Management honors the life and legacy of the late Fred Arditti - a distinguished economist, pioneer in the futures industry, and former executive at the Chicago Mercantile Exchange - who also served as a member of DePaul University's finance faculty. The Center promotes the development of the risk management field by bridging the gap between industry and academia. Each year, it hosts seminars, conferences, and educational programs for students, faculty, scholars, and professionals. The Arditti Center has cultivated deep ties with the Chicago...

By NIBARead article
2025 Compliance Outlook
7 min read

2025 Compliance Outlook

Contributed by: Joe Schifano, Global Head of Regulatory Affairs at Eventus I. Introduction As the new Trump administration takes office in 2025, it brings a shift in leadership across federal regulatory and enforcement agencies, notably the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Department of Justice (DOJ). In the short term, market commentators predict that this transition may affect the scope and intensity of enforcement actions, as the administration could prioritize deregulation and scale back certain investigations and prosecutions. However, Introducing Brokers (IBs) and Commodity Trading Advisors (CTAs) must not become complacent. Enforcement priorities can shift quickly, and a future administration or even a change in leadership within the same administration might re-energize oversight and compliance requirements. Maintaining robust compliance programs is therefore a prudent strategy, particularly because technology and best practices are evolving rapidly. Indeed, compliance departments are under dual pressures: they may see reduced...

By NIBARead article
CFTC Further Narrows Regulation 4.7 Exemption for CTAs and CPOs
4 min read

CFTC Further Narrows Regulation 4.7 Exemption for CTAs and CPOs

Authored by: Jeff Henderson & Doug Arend, Greenberg Traurig Not all IBs operate exclusively as IBs. Some are also registered as CTAs and CPOs because of the nature of their business activities. Many IBs that are dually registered take advantage of the “registration lite” limited exemptive relief set forth in Commodity Futures Trading Commission (CFTC) Regulation 4.7 (Reg. 4.7) under the Commodity Exchange Act, as amended (CEA). Such IBs should be aware of changes to Reg. 4.7 adopted by CFTC on September 12, 2024. In a divided vote, CFTC Commissioners took another step toward limiting the availability and scope of relief provided by Reg. 4.7. Although the changes adopted by CFTC in the final rule (Final Rule) are less comprehensive than those the CFTC proposed earlier in the year (Proposed Rule), they are the latest in a series of changes further scaling back both the extent to which Reg. 4.7...

By NIBARead article
JFX Cybersecurity Briefing: Guidelines for AI Usage
4 min read

JFX Cybersecurity Briefing: Guidelines for AI Usage

Contributed by: John Falck, JFX, LLC AI tools offer many efficiency benefits, but also introduce potential risks such as leakage of confidential data and providing false (“hallucinated”) or inappropriate information. These guidelines are intended to help small companies with their initial use of AI tools, enabling experimentation while supporting risk protection and management oversight. Disclose usage of AI tools To assist learning and supervision, use of AI tools should be disclosed verbally and as a note in documents or code documentation. Suggested examples, “Grammarly was used to review a draft and to suggest edits, most of which were adopted.”; “Copilot drafted an initial response to the topic question, which was reviewed for accuracy and edited. No company or client information was provided in the prompt.” Use paid versions of AI tools Although service terms change, free versions of AI tools have a higher chance of using user provided information in...

By NIBARead article
Is a New Approach to Off Channel Communications Compliance on the Horizon?
4 min read

Is a New Approach to Off Channel Communications Compliance on the Horizon?

Article Contributed by: John Ruark, Clark Hill The SEC and the CFTC have brought numerous “off channel” communications enforcement actions throughout 2024 for failure to preserve various forms of electronic communications, such as text messages and “WhatsApp” chat messages and for inadequate supervision of such messaging. For example, the SEC brought actions against 11 firms in September 2024, totaling $88 million in sanctions(1). That’s on top of SEC actions against 26 firms in August 2024, totaling more than $390 million in sanctions(2). The CFTC brought actions against four swap dealer and FCM firms in August 2024, with sanctions totaling $260 million(3). In September, the CFTC brought further actions totaling more than $30 million for off-channel communication recordkeeping and supervision issues(4)(4.1). Interestingly, all this enforcement activity has led to a few dissents from Commissioners of both the CFTC and the SEC. For example, CFTC Commissioner Summer K. Mersinger dissented with respect...

By NIBARead article
Page 1