NIBA Journal

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

March 28, 2019

NFA ISSP Amendments

Reminder: April 1 effective date for amendments to NFA's Interpretive Notice regarding Information Systems Security Programs—instructions for notifying NFA of applicable cybersecurity incidents In January 2019, NFA issued a Notice to Members announcing amendments to its Interpretive Notice entitled NFA Compliance Rules 2-9, 2-36 and 2-49: Information Systems Security Programs (Interpretive Notice). The amendments provide clarification on common questions related to training obligations and ISSP approval posed by Members to NFA, and impose a narrowly drawn notification requirement to ensure that Members notify NFA of certain cybersecurity incidents related to a Member's commodity interest activities. The amendments will become effective on April 1, 2019. Cybersecurity incidents discovered on or after April 1, 2019 must be reported to NFA. Notification Requirement The amendments require Members (other than futures commission merchants for which NFA is not the DSRO) to notify NFA of cybersecurity incidents related to their commodity interest business that: result...

Disruptive Trading Practices

Disruptive trading practices are prohibited and specifically addressed within CME rules and regulations. CME Group's Market Regulation team has created the following educational course on Distruptive Practices Prohibited. If you have a few minutes it's worth a look. Market Regulation: Disruptive Practices Prohibited - Spoofing

NYC April 10th

This year's spring conference is quickly approaching. The agenda has been set and registration is filling up quickly. Register here to reserve your spot now. Here is a peek at this year's program: [table id=10 /] Thank You to this year's Sponsors:  

Nanhua-USA joins NIBA

Nanhua-USA is joining the NIBA because they see opportunity in Asia and the US for IBs and CTAs. Nanhua-USA is the first non-bank Chinese FCM to clear at the CME Group and ICE, as well as having full clearing memberships around the globe by its affiliated companies. With China opening its markets, Nanhua USA wants to play an important role in servicing clients on both sides of the Pacific. Nanhua-USA is a full clearing FCM that is starting a CTA incubator program for Asian traders and is open to IB relationships with those interested in the Asian and US market. The parent company, Hangzhou, China-based Nanhua Futures, has over 1.8 Billion USD in capital, with more than 30 offices worldwide, including Hong Kong, Singapore, London and Chicago. Lian Hao, Nanhua USA CEO, is a 20-year veteran in the derivatives industry, spending 11 years at the CME Group where he was...

NIBA Membership

We at the NIBA would like to say thank you to all of our members and to all the derivatives industry participants that have supported the NIBA over the past 27 years. A mission of the NIBA is to create a sense of community for the derivatives industry, which allows us all to share ideas and push forward to a productive and profitable future. We create this community through our three popular conferences each year, our newsletter that shares industry insights written by members and other industry experts, and lobbying on industry issues brought up by our members. To continue the growth of our association, we will need continued support from our members which we receive through annual memberships. To celebrate 25 years, we provided free membership to all IBs and CTAs. This promotion is now ending and annual dues will be charged to all of our members. Your contribution...

Chairman's Letter - March 2018

March 2019 - National Celery Month Paczki Day NIBA is excited to welcome new members: Nanhua USA (FCM); Sudrania Fund Services (Service Provider); and Zilliak Law (Service Provider). March brings changes to policies, rules and regulations that every registered derivatives professional needs to be aware of. First, updates to NFA’s Interpretive Notice regarding ISSPs, including instructions for notifying NFA of a cybersecurity incident go into effect April 1, 2019. Each registrant should review its current policy carefully and make the appropriate updates. During February, the NFA held member workshops to discuss these requirements -- the Notice can be viewed at the NFA’s website. An Interpretive Notice entitled Compliance Rule 2-9: CPO Internal Controls System will also go into effect on April 1. Although the exact system a CPO should adopt will vary according the size and complexity of its operations, this Interpretive Notice lays out certain key components it must...

Crypto/Blockchain Resources

Resources - Cryptocurrencies/Blockchain: Want to learn more about cryptocurrencies and blockchain? Here are a few websites that can help. [table id=12 /] [table id=13 /]

NYC 2019

NIBA Educational Series - Cybersecurity Briefing

The NIBA is pleased to announce the kick off of its educational series. This idea is to cultivate ideas, discussion and networking in an intimate setting throughout the year. This event is hosted and sponsored by Bovill. There’s a gap between Compliance and IT responsibility for security in most organizations. For example, what should an Information System Security Policy cover and how best should it be implemented? We’re delighted to invite you to our briefing and networking event on Wednesday, March 6, 2019, where we will be giving you some tips to help close this gap and discuss challenges with other professionals. Alongside our friends from the NFA and security experts VSEC, we’ll be looking at: Cybersecurity responsibilities of IBs, CTAs, CPOs and FCMs Recent changes in cybersecurity rules and guidelines – for example, new guidelines for event reporting Recent regulatory security enforcements, and what’s expected in 2019. The session...

FANG Market Data Announcement

Trade the top of tech NYSE FANG+™ Index futures Introducing a new market data program NYSE FANG+ Index futures were launched on ICE Futures U.S. in 2017. Comprised of 15 high growth technology stocks, the contract averaged 1,500 contracts/day in 2018 and its momentum continues to grow. Participating market makers maintain a well quoted, liquid market and the product’s commercial success has continued to develop.The unique structure of the index, which consists of some of the largest in tech, has captured the interest of a variety of participants including retail, asset managers, CTAs, institutions, and trading desks. The index composition includes the five staple FANG stocks - Facebook, Apple, Amazon, Netflix and Google (Alphabet) - plus another five actively-traded technology growth stocks - Alibaba, Baidu, NVIDIA, Tesla and Twitter. Equally weighted and reconstituted on a quarterly basis, the contract provides a performance benchmark that allows participants to take advantage of...

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