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NIBA Journal

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

What Happens When The U.S. Dollar Declines?
CME Updates
4 min read

What Happens When The U.S. Dollar Declines?

The U.S. dollar is the most important currency in the world and when it falls, everyone feels the ripples. Over 80 percent of all currency transactions involve the greenback and investors of all asset classes have learned that its ups and downs can have significant ramifications for their investments. But the dollar’s influence is even more far reaching than that – any businesses with customers outside of their own borders need to be mindful of its swings because the moves in the greenback can have a big impact on earnings and equity valuations. Dollar Connection to Gold and Oil In fact, it is hard to find a market that is not impacted by the dollar’s fluctuations. If the greenback declines, the benefits can be widespread. Commodities like oil and gold are priced in dollars so when the dollar falls, oil and gold prices are pushed higher. This drives up prices...

By NIBARead article
Will The Fed Cut Rates in July? Six Key Dates To Watch
CME Updates
4 min read

Will The Fed Cut Rates in July? Six Key Dates To Watch

CME Group’s FedWatch Tool expects a rate cut soon. The Federal Reserve (Fed) meets on July 30-31 to decide whether to cut rates and if so, by how much. While some more vocal members of the policy-setting Federal Open Market Committee (FOMC) are ready to accommodate the White House and/or the bond market by cutting rates, others may be more data-dependent, meaning they want to assess and analyze the latest data to see if there are any signs of economic weakness. Here is our take on what the data releases in July 2019 might bring. July 5: Jobs Report: Data from the May report surprised with a relatively weak job creation number of 75,000. Monthly jobs data zigs and zags. Low numbers are often followed by a rebound, and that is what seems most likely. By our calculations, job growth is decelerating, yet still on a path to see 140,000...

By NIBARead article
Will The Fed Cut Rates in July? Six Key Dates To Watch
CME Updates
4 min read

Will The Fed Cut Rates in July? Six Key Dates To Watch

CME Group’s FedWatch Tool expects a rate cut soon. The Federal Reserve (Fed) meets on July 30-31 to decide whether to cut rates and if so, by how much. While some more vocal members of the policy-setting Federal Open Market Committee (FOMC) are ready to accommodate the White House and/or the bond market by cutting rates, others may be more data-dependent, meaning they want to assess and analyze the latest data to see if there are any signs of economic weakness. Here is our take on what the data releases in July 2019 might bring. July 5: Jobs Report: Data from the May report surprised with a relatively weak job creation number of 75,000. Monthly jobs data zigs and zags. Low numbers are often followed by a rebound, and that is what seems most likely. By our calculations, job growth is decelerating, yet still on a path to see 140,000...

By NIBARead article
We’re in A New Era of Market Data Sharing
CME Updates
4 min read

We’re in A New Era of Market Data Sharing

In almost every industry today, effective decision-making depends on having the right data. You can see the evidence in the race to disseminate business analytics. Google, Salesforce and other major firms are investing heavily in getting customers new, reliable data faster and more efficiently. The needs are especially present in financial services. Investors, researchers and risk managers are looking for market data delivered as quickly as possible – everything from futures prices to satellite images of Midwestern crops. As technology rapidly evolves, the way exchanges deliver data to clients has evolved as well. Snail Mail to Click-Through Data In just a few short years, CME Group’s Data Services business has undergone a transformation. In 2016, we were shipping physical hard drives off manual extracts from our data warehouse. Now, customers order online, agree to a click-through license, enter their credit card, and select from several delivery methods (none of which...

By NIBARead article
We’re in A New Era of Market Data Sharing
CME Updates
4 min read

We’re in A New Era of Market Data Sharing

In almost every industry today, effective decision-making depends on having the right data. You can see the evidence in the race to disseminate business analytics. Google, Salesforce and other major firms are investing heavily in getting customers new, reliable data faster and more efficiently. The needs are especially present in financial services. Investors, researchers and risk managers are looking for market data delivered as quickly as possible – everything from futures prices to satellite images of Midwestern crops. As technology rapidly evolves, the way exchanges deliver data to clients has evolved as well. Snail Mail to Click-Through Data In just a few short years, CME Group’s Data Services business has undergone a transformation. In 2016, we were shipping physical hard drives off manual extracts from our data warehouse. Now, customers order online, agree to a click-through license, enter their credit card, and select from several delivery methods (none of which...

By NIBARead article
Stocks and Bonds Can Have A Complicated Relationship
CME Updates
3 min read

Stocks and Bonds Can Have A Complicated Relationship

There has always been a contrasting yet complimentary relationship between U.S. equities and the Bond market, and I believe there always will be. In addition, one typically leads the other and that leadership continues to be debatable from market cycle to market cycle. Therefore, decades of market cycles have taught us that typically when stock prices go up, bond prices go down. In other words, bonds and stocks have an inverse relationship. If someone were fully invested, they would most likely have to sell one in order to buy the other. This periodically can create volatility. The relationship between stocks and bonds can be tumultuous at times but, the two have always found a way to live together. Risk On, Risk Off To better understand Treasuries, it is important to recognize that the relationship between treasury prices and yields of treasuries is an inverse one. When bond prices are falling...

By NIBARead article
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