NIBA Journal

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

March 29, 2018

Housekeeping, Reminders & Updates - March 2018

Written by: Mark E. Ruddy, Esq., Maria Fielding National Futures Association (“NFA”) Stays Virtual Currency Reporting Requirements NFA announced on December 14, 2017 that it would require additional reporting requirements from commodity pool operators (“CPOs”) and commodity trading advisors (“CTAs”) who are involved in virtual currency transactions and introducing brokers (“IBs”) who accept orders in virtual currency derivatives. On March 27, 2018, NFA released Notice to Members I-18-07 to inform CPOs, CTAs, and IBs that they are currently not required to file the additional reporting requirements previously announced in December 2017. NFA cautioned, however, that it may contact individual firms for additional information. The NFA announced the additional reporting requirements for CPOs and CTAs in Notice to Members I-17-28 and the additional reporting requirements for IBs in Notice to Members I-17-29. NFA Town Hall Webinar On Monday, April 9, 2018 2:00pm EDT, NFA will host a Town Hall Webinar featuring...

FinTech Exchange 2018

NIBA Members Receive an Additional $100 Off (Discount already applied) Alternative Data. Trading Innovation. Blockchain in Capital Markets. And, of course Cryptocurrencies are headline topics for 2018! And, don't miss our new Startup Exchange Competition the day prior to the main FinTech Exchange Event. Back for its 4th year in Chicago on April 25 & 26, FinTech Exchange is the leading event for financial markets and trading technology. Hear from top industry experts and firms such as Cboe Global Markets, Kraken, Tibco, Alibaba Cloud, CME Group, DataRobot, Sterling Trading Tech, Gate 39 Media and Vela. Plus we're offering you an EXCLUSIVE offer which gives NIBA members an additional $100 off ticket prices with promo code "NIBA". FinTech Exchange is a sold out show every year, so grab your ticket before they are all gone! Register for FinTech Exchange (NIBA discount already applied)

By NIBARead article

Update NFA Annual Questionnaire regarding Virtual Currencies

March 29, 2018

1 min read

Update NFA Annual Questionnaire regarding Virtual Currencies

On December 14, 2017, NFA issued Notices I-17-28 and I-17-29 requiring commodity pool operators (CPO) and commodity trading advisors (CTA) that execute transactions involving virtual currencies or virtual currency derivatives and introducing brokers (IB) that solicit or accept orders in virtual currency derivatives to immediately notify NFA by amending the firm-level section of the annual questionnaire. NFA reminds CPOs, CTAs and IBs that this is an ongoing obligation. Notices I-17-28 and I-17-29 also described additional reporting requirements for these CPOs, CTAs and IBs. The purpose of this notice is to inform CPOs, CTAs and IBs that NFA is not requiring the filing of this additional information at this time. NFA may, however, reach out to individual firms to request information as needed. If you have any questions regarding this notice, please contact Christine Roche, Associate Director, Compliance (croche@nfa.futures.org or 312-781-1562) or Mary McHenry, Associate Director, Compliance (mmchenry@nfa.futures.org or 312-781-1420).

CME Market Data Fee Increase

Effective April 1, 2018, CME Group will increase the monthly Real Time: Professional Market Data Fee to $105 per month per exchange, from $85 per month per exchange. Please click here for details related to these fees. Additionally, CME Group will begin to charge market data fees for CME Direct users in Q2 2018. Clients who trade on CME Direct may be eligible for fee waivers based on trading activity. Final details will be available by end of Q1 2018. Please click here for details related to this new policy.

NFA Annual Member Meeting Report

In early February, NFA held its Annual Member Meeting. NIBA attended and asked NFA staff several questions suggested by NIBA association members. The answers to two of the questions asked was printed in our February newsletter. This is a third question, and NFA's response. Q: What does the NFA do to monitor FCM Segregated Accounts? A: Investor protection is a key element of NFA's mission, and the segregation of customer funds by an FCM is an important aspect of investor protection. Each FCM has a designated self-regulatory organization (DSRO) that is primarily responsible for monitoring that FCM for compliance with NFA rules and CFTC regulations, among other things. NFA performs routine annual risk-based exams of the FCMs for which it is the DSRO. In addition to annual exams, NFA also has measures in place that enhance its ongoing risk monitoring of FCMs that hold customer funds report their customer segregated,...

The Impact of US LNG Exports On The Global Gas Market

New Whitepaper: The Impact of US LNG Exports On The Global Gas Market The LNG market is undergoing a seismic shift driven primarily by the transformation in demand/supply dynamics and market structure. This has facilitated the greater integration of traditionally fragmented regional markets and accelerated the emergence of new market entrants. The combination of these factors has led to the growing commodization of LNG, which is evolving into a global commodity comparable to oil. The new landscape requires new portfolio optimization approaches and commercial considerations. Access Report to Learn More

Chairman's Letter - March 2018

March was named after Mars, the Roman god of war and an ancestor of the Roman people through his sons Romulus and Remus. March is the first month of spring in the Northern Hemisphere. March is widely thought of as the month when the earth becomes dry enough so that it is possible to cultivate in many cultures. In American culture, March Madness - my personal favorite time of the sports year - is a prominent theme! March is another busy month for the NIBA. Traditionally it is the time we reach out to all our sponsors and supporters with a special thank you. Without the support of our FCM, Exchange and Service Provider members, we could not present our in-person membership meetings. These members provide speakers and expertise for panel discussions, financial assistance and even actual meeting space. If you want more information on becoming a NIBA Service Provider...

Scott Stewart, NFA Board of Directors (GIB)

Scott Stewart, CEO, Stewart-Peterson Group, was recently elected to the NFA Board of Directors representing the Guaranteed Introducing Brokers category. Stewart-Peterson Group, is an GIB located in West Bend, WI and registered with the NFA since 1985. Scott is a long-time friend of the NIBA, having served as President of the Association for several years. We asked him to "introduce" himself to the NIBA Newsletter readership, and talk about some of the issues at NFA which he feels are important to the IB community..... "I am honored to be on the NFA board of directors. For those of you who are not familiar with me, I founded and have owned Stewart-Peterson (an agriculture-focused GIB) for over 30 years and have been in the futures industry for nearly 40 years. My work within the industry includes being a charter member of the NIBA, where I served as board member and President....

By NIBARead article

February 22, 2018

3 min read

Ask NFA - Feb 2018

As your industry advocate, the NIBA provides many services which help your business stay in compliance with NFA regulations. “Ask the NFA,” is the way you can ask questions about those regulations and compliance requirements without having to call NFA directly. Just email us at nfacomments@theniba.com and we will get the answers for you. Please keep in mind the purpose of this contact is to keep the lines of communication between the NFA and NIBA members. This month’s questions were selected from those submitted by NIBA members. The answers were supplied by NFA staff. Q: What is the time frame that I need to notify NFA if one of my customer's trades bitcoin futures? A: Any introducing broker (IB) that solicits or accepts orders in virtual currency derivatives must notify NFA immediately by amending the firm-level section of its annual questionnaire. This system is only accessible by authorized users. See...

Housekeeping, Reminders & Updates - Feb 2018

Written by: Mark E. Ruddy, Esq. Maria Fielding The National Futures Association (“NFA”) Adds Additional Questions on the Annual Financial Statement The NFA announced that as of October 31, 2017, there will be two additional yes/no questions added to the Annual Financial Statement. Both questions are related to virtual currency activities. The NFA announced the additional questions in Notice to Members I-18-03. Financial Crimes Enforcement Network (“FinCEN”) Updates Jurisdictions with Deficiencies On February 9, 2018, FinCEN released an advisory updating their list of strategic anti-money laundering (“AML”) and combatting the financing of terrorism (“CFT”) deficiencies. Notably, Sri Lanka, Trinidad and Tobago, and Tunisia were added to the “Improving Global AML/CFT Compliance: On-Going Process” list while Uganda was removed. Bosnia and Herzegovina, Ethiopia, Iraq, Syria, Vanuatu, and Yemen are all currently remaining on the list. No changes occurred regarding Democratic People’s Republic of Korea and Iran, which are currently recommended that...

By NIBARead article

Page 30