NIBA Journal

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

July 25, 2019

NIBA Chicago Conference 2019

Summertime in Chicago is hard to beat and something that everyone looks forward to after a long hard winter. While the boating and patios are in full force the NIBA is charging ahead focused on its annual fall conference. We of course enjoy our fair share of patio time too! This year's program is shaping up to be another one for the record books and we are excited to share it with the entire membership. First up is we will be in a new location this year. The CME has been kind enough to share their space with us for a number of year's but due to scheduled construction this year we will be enjoying a new facility just down the street. The Stuart School of Business at Illinois Tech is hosting us this year at their downtown Chicago campus. We will have larger capacity, auditorium seating and electrical outlets...

NIBA welcomes the American Financial Exchange to the Association

Cboe Futures Exchange and American Financial Exchange Announce Planned Launch of AMERIBOR® Futures Cboe Global Markets, Inc. (Cboe: CBOE), one of the world’s largest exchange holding companies announced plans to launch futures on the AMERIBOR® (American Interbank Offered Rate) interest rate benchmark on Cboe Futures ExchangeSM (CFE). The new futures will launch on trade date August 16, in honor of the 42nd anniversary of the launch of Treasury bond futures. AMERIBOR futures will be cash-settled and are designed to reflect the market expectations of either compounded daily annualized AMERIBOR interest or average simple daily annualized AMERIBOR interest. CFE plans to initially offer two AMERIBOR futures products: three-month and seven-day contracts, followed by other short-term products. AMERIBOR, disseminated by the American Financial Exchange, LLC (AFXTM), is a transparent, transactions-based interest rate benchmark that represents market-based borrowing costs. The AMERIBOR rate is calculated daily as the transaction volume-weighted average interest rate of...

By NIBARead article

CFTC Grants Certain AML Relief to IBs that do not introduce customers to FCMs

July 25, 2019

2 min read

CFTC Grants Certain AML Relief to IBs that do not introduce customers to FCMs

Written by: Ansley Schrimpf, Mayer Brown This week the Commodity Futures Trading Commission’s (“CFTC”) Division of Swap Dealer and Intermediary Oversight (“DSIO”) issued interpretive guidance to clarify requirements for introducing brokers (“IB”) with respect to the Customer Identification Program (“CIP”) [1] and Beneficial Ownership (“BO”) [2] rules. [3] DSIO, in coordination with the Financial Crimes Enforcement Network (“FinCEN”), is granting relief from CIP and BO rules to IBs that do not “introduce” customers to a futures commission merchant (“FCM”). Background The CFTC and FinCEN have authority to administer and enforce compliance with CIP and BO requirements under the Bank Secrecy Act. FinCEN requires financial institutions, including IBs, to establish anti-money laundering (“AML”) programs and sets forth minimum requirements. IBs are required to establish AML programs that address the CIP and BO rules. Guidance Although traditional IBs introduce their customers to FCMs, there are registered IBs, including many voice brokers, that...

Do Better Marketing: Stop Sending Email

  Marketing Automation Is The Next Step In Talking With Your Customers and Prospects Why would you want to stop sending emails to improve your marketing? OK, we admit: we don’t actually want you to stop emailing altogether. But we would suggest that the days of opening futures accounts and adding new customers by blasting your entire email list are over. The marketplace has shifted in many different ways, and marketing has changed also. People have an aversion to being mass-marketed -- they want you to recognize what is unique about them and tailor your communications with them accordingly. Last week at the 6th Annual Joint NIBA/DePaul University Symposium in Chicago, we presented the idea that futures brokers and financial firms would benefit from using Marketing Automation to more effectively reach the right people, at the right time, with the right message. Email Marketing To understand marketing automation, you need...

Preparing for UMR and Initial Margin

CME Group’s Jack Callahan discusses UMR and initial margin challenges: Who is impacted, what you need to know, and how CME Group can help. [Watch Now]

Looking for FX rate trade ideas into Brexit?

NIBA is pleased to welcome Eurex Exchange as a member of the NIBA. Looking for FX rate forecasts into Brexit? Searching for an efficient tool to maneuver Spot FX? Join us July 25 in Chicago to learn how to capture new opportunities via #Eurex Rolling Spot FX Futures..... Unchartered Territory: All Eyes on Europe! How Will the UK’s Exit from the EU Affect the Euro & British Pound Eventbrite link Eurex’s Rolling Spot FX Futures offer an efficient new avenue to trade the OTC FX Spot price in a cash settled daily Futures wrapper, with all the assurance of a CCP. These “perpetual” daily FX Futures never expire, but are rolled at the end of each day with a neutral 1 day T/N roll midpoint. Rolling Spot FX Futures let the end user track / trade the OTC FX price in lock step while avoiding the complications of accessing traditional...

Standing Room Only!

It was standing room only at the 6th Annual July 11 NIBA/DePaul University Joint Symposium. NIBA thanks our event sponsors: DePaul University/Arditti Center Association of Futures Markets Dorman Trading Nanhua USA Sudrania Fund Management Electronic take-home bags have been sent to all attendees (You can check them out here in case you missed it) -- if we missed you, please contact Steve Petillo, spetillo@straitsfinancial.com. Last week’s program included three business sessions which were taped and will soon be available on the NIBA website. Speakers and sessions include: Armchair Chat: Dan Roth, former CEO of NFA interviewed by Matt Kluchenek, Partner, Mayer Brown. The State of Managed Futures: • Mark Shore (Moderator), DePaul University • Ryan Hart, Coquest Advisors • Greg Taunt, IASG • John Cummings, RCM Alternatives Issue Briefings in 15-Minutes or Less: • Andrew Strasman (Moderator), Totem Asset Group • Blake Brockway, National Futures Association • Mark Omens, CME...

Thanks to DePaul Planning Committee

Thanks!! Thanks to everyone who attended last week’s joint Symposium at DePaul University. It was another standing room-only event for the NIBA. Special thanks to this year’s planning committee: John Roe (Chairman), BTR Trading Dr. Carl Luft (Co-Chair), DePaul University/Arditti Center Katie Tervin, Zaner Group Andrew Strasman, Totem Asset Mark Shore, Coquest Advisors & DePaul University Tom Mitchell, Gain Capital Futures Steve Petillo, Straits Financial Melinda Schramm, NIBA If you would like to serve on the planning committee for NIBA’s annual fall membership meeting, please contact event chairman, Ryan Griffeth, ryan.griffeth@postrockbrokerage.com.

Chairman's Letter - July 2019

National Hot Dog Month National Ice Cream Month On July 15, Heath Tarbert took over as Chairman of the Commodity Futures Trading Commission (CFTC) replacing Chris Giancarlo who served for five years. The industry’s big question as posed by FIA SmartBrief is, will he be as supportive of the cryptoasset and fintech industries as his predecessor? Tarbert is an attorney who clerked for Supreme Court Justice Clarence Thomas, was associate counsel for George W. Bush and focused on global financial regulation when he was in private legal practice. Most recently, he served in the Trump administration’s department of the Treasury, representing it at the G7 summit among others. Tarbert was confirmed by an 84-9 vote in the Senate and received the support of several industry groups -- so we will be watching closely as he takes the regulatory reins. FIA Law & Compliance presents a webinar discussion focused on the...

Market Update: Powell Gives A Signal

Portfolio managers were waiting on a signal from the Fed, and they received it from Fed Chair Jerome Powell’s congressional testimony, says Jack Bouroudjian. Powell suggested that “concerns about the strength of the global economy continue to weigh on the U.S. economic outlook.” Would a rate cut start an easing cycle, or is an insurance cut coming? Jack examines the landscape and gives us two trends to watch.   The post Market Update: Powell Gives A Signal appeared first on OpenMarkets. Source: CME Open Markets - Market Update: Powell Gives A Signal

By NIBARead article

Page 13