NIBA Journal

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

November 28, 2011

Executive Coaching | Sequel to, "Grow Your Business" - Part 2

Much of my work is surprisingly personal in nature, since personalities and relationships underlie human resources issues. I have been called a business shrink, a career therapist. I provide a safe, objective impartial professional point of view. In last month’s NIBA Journal I told a personal story of when I refused a job offer. As the story continues…Remember I had refused a job offer because the president of the company was “rude” to me during the interview. As karma would have it, years later I ended up working with the same “rude” person….to be continued. But by then things had changed. He was building a new law practice and I was an independent Human Resources Consultant. We worked on his “rude” behavior, which turned out to be a profound shyness. His underlying problem was a discomfort with talking with a stranger one on one. While he was an excellent public...

MF Global Statement by NFA IB Representatives

NIBA Members, We'd like to share a few thoughts about the MF Global situation. First, we believe that customers should get segregated funds due them immediately. The basis of our industry has been that funds held in a commodity account have a minimal risk of loss due to institutional or market-structure failures. It is extremely important that we instill confidence in our customers and lenders to hedge and speculate in our markets. Just returning from an NFA Board meeting, we are assured the entire industry is working to get customer funds released by the bankruptcy trustee as soon as possible. The NFA is scheduling visits/audits to all FCMs to confirm compliance with seg fund requirements. Remember, facts are limited and action in this matter is completely up to the court appointed trustee. Regulators are in search of information and facts for all involved in this situation. We would urge everyone...

Futures Industry Guarantees - Who Guarantees What to Whom?

Dear All, The MF Global debacle has brought to light a misunderstanding of the structure and guarantees within our industry. We are finding larger members of our community who choose to violate a code of ethics that we have observed for generations. Our industry has prided itself on the fact that no customer has lost funds held in a customer segregated account due to the financial failure of an FCM. This has been due to the cooperation of the futures exchanges, clearing houses, and the clearing members of the exchange clearing houses. It has not been due to any clearing house guarantees. In the past, when clearing firms have failed, everyone worked together to protect the customer. As our industry consolidates, (exchanges, clearing houses, FCMs and the clearing member community), the financial risks of every individual failure have grown exponentially. The Role of Exchanges vs. Clearing Houses Exchanges provide a...

What Can You Do in the Midst of the MF Global Meltdown

Many of our NIBA members have been hard hit by the MF Global debacle. Understandably, emotions are raw, frustration is high and there is widespread financial hardship. While clearly there are no instant solutions to this mess, we write to let you know what NIBA has been doing on your behalf, and what you can do. The road ahead is a potentially long, but at this juncture the immediate need is the release by the bankruptcy trustee of additional segregated funds owned by clients to not only maintain existing trading positions, but necessary for trading at all. Although the CME has added some $300 million funds, the release of all customer assets is vital to an efficient marketplace. In addition, there is the important issue of when and how, our broker membership might recover the commission revenue rightfully earned. It seems these two huge issues are out of your control...

Chairman's Message - MF Global | November 2011

Dear Members - 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. Many NIBA members are suffering financial hardships due to MF Global’s failure and bankruptcy, and the process for recovery appears to be lengthy. The NIBA has received hundreds of phone and email messages both from members who are directly affected, and from those who are not. Here’s what we’ve done so far in your behalf: Submitted a Petition which included 700 signatures collected online in about 72 hours directly to the Bankruptcy Court calling for the immediate distribution of segregated funds. Attended Court and Trustee meetings in New York by representation of our Association legal advisors. Organized numerous meetings and communications with other industry professionals including the NFA, CFTC, FIA, CME and ICE. Voiced the Association’s opinions in interviews...

NFA - MF Global Statement

Over the past few weeks, National Futures Association (NFA) has been assessing how our member firms have been impacted by the MF Global Inc. bankruptcy. While NFA was not the designated self regulatory organization (DSRO) for MF Global, Inc., we have been in contact with all of our Members that had accounts with MF Global, Inc., including introducing brokers (“IB”). NFA staff is working closely with its Member firms to assess their specific situations and address their needs as best as possible. For example, when accounts were transferred out of MF Global, Inc., NFA responded to many requests from IBs to assist them in locating their customer accounts. NFA staff also worked with a number of MF Global guaranteed IBs and their new guarantors to assist with a smooth transition. On November 7, NFA sent a Notice to Members to independent introducing brokers to assess the bankruptcy's impact on their...

Petition to US Bankruptcy Court: Update

NIBA's legal advisor, Schuyler, Roche & Crisham (SRC) was present in court Thursday morning when US Bankruptcy Judge Glenn approved a plan submitted from the MF Global trustee to begin a distribution of approximately $520 million, or about 60% of customers cash collateral. Neal Stevens, an attorney with SRC, confirmed that the definition of "cash equivalents" includes T-bills. Mr. Stevens had earlier hand-delivered NIBA's online petition containing over 700 signatures collecting in only about 72 hours. The transfer of funds back to customers may begin by November 24. Some groups had objected to this method of distribution saying it was "inequitable," but the trustee indicated that that there is a third transfer of funds being considered. NIBA's online petition requested return of the customers segregated funds as quickly as possible.

Petition to US Bankruptcy Court: Release Remaining Cash Balances of Former MF Global Customers

Greetings NIBA members and supporters, We urge you to sign the following petition in order for the bankruptcy court to have a chance to hear from you - the broker, the trading advisor, the IB - directly. Some of you have the resources to pursue your interests individually, that’s great. But, the court needs to hear from all of you. Our voice is much stronger if we are unified; acting collectively, we can make a difference. This is one of the reasons you belong to and support the NIBA. We are standing up for the rights of all our members. Please sign regardless of whether you cleared with MFG. ---------------- Honorable Martin Glenn U.S. Bankruptcy Court, Courtroom 501 One Bowling Green New York City, NY 10004 The National Introducing Brokers Association (NIBA) submits this Petition urging you to exercise your authority and immediately, to the extent it does not hinder...

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Focus on the Membership

October 28, 2011

4 min read

Allendale Inc. | Focus on the Membership, October 2011

About the Firm: How did you get started? After graduating from Southern Illinois University, I worked in animal husbandry field for several years. The desire to increase revenue while controlling my destiny led me to the futures industry. My first position in the futures industry was as a broker with Heinold Commodities. Then, in 1984 I started Allendale Inc. with partner Bill Biedermann. Our focus was to provide the best service possible to our customers and reward the personnel that worked the hardest. We are a full service brokerage firm and our customers are still our most important asset. Do you provide additional services besides brokerage? Being a full service firm we are always looking for ways to add value to our services. We provide unique research on agricultural commodities for our clients. Our research staff produces the Allendale Research Center available by subscription on our website www.allendale-inc.com. We also...

Chairman's Message | October 2011

Dear Members - Have you ever needed to talk to an attorney who knows what a "GIB" is? Would you like to know an accountant who can read a client account statement which includes options and forex positions? Look no further than the NIBA Service Providers Directory. The new Service Providers Directory is posted at https://www.theniba.com/association/ServiceProviders.aspx. It includes attorneys, accountants, publications, market information companies and others who have specific knowledge of the financial industry. These professionals have real, longtime experience in the business, and speak our language. Many companies listed offer discounts or special incentives to NIBA members. The directory is currently being opdated and expanded. If you would like to suggest a service or provider, or if you would like to list your firm, contact John Jensen, hwfi@pacbell.net. We hope that our new Service Providers Directory will be a valuable benefit of NIBA membership for you. Warm regards, Melinda

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