NIBA Journal

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

February 8, 2018

3 Ways to Source a CTA

Growing Your Introducing Broker Business to Provide Value to Investors Imagine, if you would, that the managed futures space is a puzzle. Except that it is constantly adding new pieces into an unknown, multidimensional shape. For an Introducing Broker (IB), a piece in the middle of that puzzle, how one connects an investor to a commodity trading advisor (CTA) may be a simple interlock: the CTA performs one function, communicates with the IB, which then in turn performs another. Their only understanding of the other’s function is based upon the seam that connects them. Yet the managed futures space continues to grow, and with it the number of CTAs and IBs connecting with each other. In this evolving space, how and an IB and CTA form a symbiotic connection to best serve their customers? At its foundation, an IB is a business, and a business must market itself to the...

Broker Rebate Program for FANG+ Index Futures on ICE

ICE Futures U.S. introduced NYSE FANG+ Index futures in Q4 2017. The underlying NYSE FANG+ Index was developed by the NYSE and includes 10 actively traded stocks that represent some of the top innovators across today’s tech-oriented companies. The current index composition includes the five core FANG stocks - Facebook, Apple, Amazon, Netflix and Google (Alphabet) - plus another five actively-traded technology growth stocks - Alibaba, Baidu, NVIDIA, Tesla and Twitter. The index is equally weighted and reconstituted on a quarterly basis, providing a performance benchmark that allows participants to take direct advantage of the capital efficiency of futures. The unique composition and construction of the NYSE FANG+ Index has resulted in its outperformance of other major indexes Over the past three years, the NYSE FANG+ Index has displayed a 35% annualized return as compared to 15% for the NASDAQ-100®, and 10% for the S&P 500®. NYSE FANG+ Index futures...

By NIBARead article

February 8, 2018

2 min read

NFA Annual Members Meeting

On Tuesday, February 6, the NFA held its annual members meeting. For the umpteenth year in a row, I was the only NFA member attending. I attended in order to present NFA staff members with questions from the NIBA membership - questions which IBs/CTAs might not want to ask the NFA directly. As they always are, NFA staff was very responsive, conducted themselves very professionally and responded to our inquiries. This year, our membership had several questions for NFA staff. Here are two of those questions and the answers. The others will be posted in upcoming newsletters. From an IB -- while I understand why the principles of “best practices” is employed by NFA, it would be helpful if NFA would provide information about practical or specific ideas and solutions, especially in the areas of cybersecurity and recording. NFA: The original Interpretative Notice (IN) on cybersecurity is nearly two years...

Chairman's Letter - Feb 2018

February: second and shortest month of the year in the Julian and Gregorian calendars In Old English, February was referred to both as “Solmounath” - a month of mud and Kale-mounath - a month of cabbage! Mud and cabbage or not, February is a good month to set your reminders for several upcoming notable events Remember -- attendance at NIBA in-person symposiums and webinars is free for members. So, mark the following dates now: April 19 - NIBA Forum, New York Athletic Club, NYC. Sessions include (i) marketing, (ii) short, critical answers to three of our most asked compliance questions and, (iii) a cryptocurrency panel. The program opens at 1:30pm. Registration is now open. August 8 - 5th Annual NIBA/DePaul Joint Symposium, DePaul University (downtown campus), Chicago. The planning committee is focusing in on topics and speakers for this meeting. To volunteer for the committee contact me, melinda@futuresrep.com or Mike,...

By NIBARead article

Can you Firm Benefit from the New Tax Laws?

January 24, 2018

1 min read

Can you Firm Benefit from the New Tax Laws?

Michael Coglianese will be presenting this topic in an online presentation which will be made available to NIBA members. This effort is being co sponsored by the NIBA and John Lothian. All IB/CTA/CPO owners or interested parties should tune in as this session will highlight real changes you can make to your firms' structure to best position yourself for the new tax laws. Stay tuned for additional information and release dates.

By NIBARead article

5 Things to Know When starting a Cryptocurrency Fund

January 24, 2018

4 min read

5 Things to Know When starting a Cryptocurrency Fund

The cryptocurrency asset class is here to stay and growing at warp speed. The stories are real. Some cryptocurrency traders have turned $100,000 into $1,000,000 in less than a year. Now those traders are creating cryptocurrency funds so they can trade on a multimillion dollar scale. This article will focus on five things you should know before setting up your crypto fund. As a disclaimer I am not an attorney and therefore not providing you with legal advice. If you need a legal advice, our firm can point you in the right direction. We are a CPA firm that specializes audit, tax, and compliance services for the alternative investment industry. Cryptocurrency is one of the investment classes that falls into our specialized wheelhouse. Regulations: Regulations concerning crypto are also being implemented at warp speed. The IRS, CFTC, and SEC are developing laws to regulate the crypto asset class on an...

NIBA NYC Conference

This year's agenda has been posted and Registration is now OPEN for NIBAs annual Spring Conference in New York City. We will be holding a half day session on April 19th at the New York Athletic Club. Please see below to register for this year's event: https://www.theniba.com/niba-event/niba-nyc-conference/

How can an IB Benefit from the Tax Changes?

The tax changes will benefit IBs, CPOs and CTAs since most are organized as corporations or pass thru entities (LLCs , LPs and S-Corps) . The following will give you a summary of some of the main tax changes that will be effective in 2018. If you can defer income to 2018 from 2017 it could be tax beneficial to you. The new tax law under the Tax Cuts and Jobs Act includes many changes to the current law and will impact virtually every individual and business on a level not seen in many years. At the business level, the corporate tax rate has been reduced from 35% to 21% and the corporate alternative minimum tax has been repealed. Pass-through businesses currently pay tax at individual rates, the highest rate at 39.6%. The new tax law allows a temporary deduction in an amount equal to 20% of qualified income of...

Chairman's Letter - Jan 2018

January - the first month of the year in the Julian and Gregorian calendars. January (in Latin Ianuarius) is named after the Latin word for door - ianua, because January is the door to the year and an opening to new beginnings. According to ancient Roman farmer’s almanacs, the month is most often thought of as being named for Janus, the god of beginnings and transitions in Roman mythology. This year NIBA will present three in-person membership events. 2017‘s New York program was standing room only. Registration is already open on the website for this year -- April 19th, at the New York Athletic Club. Our traditional summer program will be held in July at DePaul University, Chicago. And September brings NIBA’s fall event at the CME Group Building, Chicago on September 13th. These in-person meetings are open to all NIBA members. NFA will hold its Annual Meeting of the...

Chairman's Letter - December 2018

Not Completely Out-with-the-Old: Definitely In-with-the-New The NIBA has had a good year. New members, four great in-person events, over 20 newsletters, and a terrific year-end Advisory Group Meeting. Our partnership with member FCMs, member Service Providers, DePaul University and the CME Group has grown and flourished. NIBA's voice and input on all types of industry issues including significant regulation, has been strengthened as we were included by the NFA and CFTC in roundtables and on advisory committees. In 2017, Association membership has been free for all registered IBs and CTAs. A firm only has to claim its listing on the NIBA website to enjoy all the benefits of membership. The new year will bring anticipated and exciting products, people and technology to the 1,201 NFA-registered IBs, and the 1,645 NFA-registered CTAs -- can you say "bitcoin?" Events are planned in NYC in April, in Chicago during July and September, and...

By NIBARead article

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