Insights, analysis, and updates from the National Introducing Brokers Association
Volatility in equities returned in 2018, surprising markets with a spike in February after a remarkably calm 2017. Volatility, however, retreated through the summer before reappearing in the fourth quarter, resulting in some big price moves in major equity indices. Read more.
NIBA’s annual conference, scheduled for April 10, will be held at the New York Athletic Club. The Association has held NY meetings for over 15 years -- this is our 5th year in a row at the historic NYAC. The purpose of all NIBA events is education -- education on changing regulation, on compliance and on business growth for all categories of registered derivatives professionals. A standing room only crowd is expected again this year. Business sessions this year could not be more topical! -Mike Coglianese (Michael Coglianese, CPA) will review changes in federal tax laws effecting all of us; -Mike Phillips (VSEC, LLC) will explain amendments to NFA ISSP requirement and how your firm can comply; - Alison Loughlin (CME Group) discusses how this administration’s tariffs and taxes are affecting the markets and your business; - Dr. Richard Sandor will wrap-up the conference with his views from the past...
On Feb. 5, 2019, I attended the Annual NFA Members Meeting at NFA offices in Chicago. Maureen Downs, Vice-Chairman of the NFA Board of Directors and Tom Sexton, President and Chief Executive Officer of the NFA along with several executive level members of the NFA staff attended the meeting. I was the only attendee from the industry. The following issues were discussed: ISSP Up-dates (Effective April 1): NIBA members had concerns about the cost of implementing new requirements, third-party vendor liability and whether NFA exams in this area would take the form of education versus enforcement for a period of time after the changes become effective. NFA addressed cost concerns by pointing out that although the requirements are specific, implementation is quite flexible -- it should be tailored to the size, type, etc. of the IB itself. This is not a one-size-fits-all issue. All registrants should conduct due diligence on...
February in Chicago has begun in the deep freeze. Dangerous, record-setting temperatures meant kids missed school, and meetings were cancelled. The NIBA Board of Directors used the time to put the finishing touches on the NIBA Annual New York City Event. Our Annual NYC event is scheduled for April 10th. Four business sessions and a networking reception begin at 2pm (onsite registration open at 1:30pm) at the New York Athletic Club, the site of our meetings for the past five years. Registration is open. The NFA held its annual members meeting at its Chicago office on Feb. 5. I attended and took several questions from members to discuss with NFA staff. Read a summary of that meeting here. NFA will conduct two workshops later this month -- Feb. 25 in Chicago and Feb. 27 in New York. Cybersecurity, including the recent amendments, NFA updates and recent examination themes will be...
NFA recently adopted an Interpretive Notice entitled NFA Compliance Rule 2-9: CPO Internal Controls System (Interpretive Notice). The Interpretive Notice requires commodity pool operator (CPO) Members, which have the ability to control customer funds, to implement an internal controls framework designed to: Protect customer funds; and Provide reasonable assurance that the books and records of a CPO's commodity pools are accurate and reliable and that the CPO is in compliance with all CFTC and NFA requirements. The Interpretive Notice will become effective on April 1, 2019. In order to demonstrate an adequate internal controls system, the Interpretive Notice also requires CPO Members to have a strong control environment, which includes adopting and implementing written policies and procedures that are reasonably designed to ensure that the CPO's operations are in compliance with applicable NFA rules and CFTC regulations. The Interpretive Notice further requires CPO Members to have written policies and procedures...
Market Regulation works to protect market integrity, to enforce rules that protect all market participants, and to act proactively to mitigate risks to prevent damage to the marketplace. Market participants need to understand and comply with Exchange Rules. This course can assist market participants by providing information and resources necessary to meet their compliance needs. [Begin Course]
Alison Coughlin will discuss current macroeconomic conditions and explore their potential impact on domestic and global agriculture. This presentation will include a dialogue about the trade war with China, an examination of other free trade agreements, and what these shifts may mean for the future of the agricultural sector. Register here to reserve your spot now Alison Coughlin Manager Research and Product Development CME Group Inc.
Market relationships seem to have normalized: equities to fixed income, volatility to equities and fixed income, forex to the rest of the capital market. Jack Bouroudjian highlights those relationships and the impact they may have as we head into February. The post Market Update: Relationship Normalization appeared first on OpenMarkets. Source: CME Open Markets - Market Update: Relationship Normalization
For most global investors, U.S. dollar hedging was the only currency risk management strategy to follow in 2018. The dollar rose against all of its major developed market crosses – by 3.4 percent vs. the euro; 4.5 percent vs. Canadian dollar; 5.1 percent vs. pound sterling; 5.8 percent vs. Australian dollar; and a more modest 0.3 percent vs. the yen. Dollar strength against the supposed darlings of the emerging markets – the BRICs (Brazil, Russia, India and China) – was even more marked. The Brazilian real declined 15.1 percent against the USD, the Russian rouble 11.8 percent, Indian rupee 10.4 percent and the yuan by 4.2 percent. Long dollar was more than a good hedge, against a backdrop of generally declining asset prices it was among the trades of the year. The USD also burnished its credentials as a safe haven. When the S&P 500 peaked on 21 September 21,...
With the commencement of a new round of OPEC + Russia crude oil production cuts on January 1, many people are worried about a sudden and crippling rise in the price of gasoline at the pump. The relationship between oil prices and gasoline prices is notoriously hard to track. WTI crude oil prices fell from the high of $76.90 reached on October 3, 2018 to the recent low of $42.36 on December 24, a 45 percent drop. Gasoline prices, however, fell only 17.3 percent in that same time period. According to the Energy Information Administration (EIA), regular retail gasoline price averages dropped from $2.86 per gallon to $2.366 per gallon from the beginning of October to the end of December. Clearly the price of gasoline is not exactly correlated to the price of crude oil especially when price is falling quickly over a short span of time. So what is...
