NIBA Journal

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

July 13, 2017

Vela Trading Techologies to Purchase OptionsCity

Combined company will deliver an expanded set of front office products and services, including market access, risk management & analytics New York, London, Chicago, June 20, 2017 – Vela Trading Technologies LLC (Vela), a global leader in high performance trading and market data technology, has entered into a definitive agreement to acquire OptionsCity Software, a global provider of futures and options trading and analytics solutions. The OptionsCity acquisition will expand Vela’s front-office capabilities to include advanced analytics and risk management tools, enhance its market access managed services with additional trading and content solutions, and accelerate its data cloud strategy. The acquisition will also accelerate OptionsCity’s growth strategy, providing its clients with access to additional asset classes, trading venues, geographies, low-latency data feeds, and market access products. Jennifer Nayar, CEO of Vela, said, “This acquisition will continue to enhance the value we deliver to our clients. We are delighted to enhance...

Marketing Managed Accounts & Funds Panel Preview

We are pleased to have a panel this year that will focus on the regulatory considerations—the “traps”—that await CTAs who market funds or managed account programs. We will center on the key CFTC and NFA rules, and the issues spawned by those rules, and take a peek into the future with respect to potential developments. Topics will include the treatment of performance results and proprietary trading results. We’ll also look at the impact of the JOBS Act on fund-raising, and what’s been keeping the regulators’ enforcement teams busy. Ultimately, the goal is to provide you with hands-on advice and insights. If you have not already registered please do so at the following link and keep in mind there is limited capacity at this event: Register HERE

Chairman's Letter - July 2017

“Taking it to a Whole ‘Nother Level” - Eugene Struthers (2004-2009) Keegan-Michael Key, American writer and actor uttered this famous phrase in character as “Eugene Struthers” on the late night comedy show MadTV each time he expressed his very passionate desire to know more about a person or subject. At the 4th Annual NIBA/DePaul University Joint Symposium, we’ll be taking it to a whole ‘nother level with three business sessions presented by nine industry experts. The Symposium, July 20 from 1:30-6:30pm at the Chicago downtown campus of DePaul University is free for all registered derivatives professionals. Space is limited; advance registration is required. (LINK Here) We’re very excited to have John Lothian, Executive Chair and co-founder of MarketsWiki kick-off the event with his Keynote speech entitled “Brexit & Other Extraordinary Popular Delusions.” If you are wondering how Brexit will affect your FCM and by extension, your business, you cannot afford...

John Lothian Keynote Speaker Preview

John Lothian's keynote speech at the NIBA-DePaul Symposium is titled "Brexit and other Extraordinary Popular Delusions." The former Introducing Broker and longtime newsletter publisher will reflect on the potential impact of Brexit and other macro influences on the industry and markets. If you have not already registered please do so at the following link and keep in mind there is limited capacity at this event: Register HERE

By NIBARead article

June 29, 2017

1 min read

Senate Agricultural Committee Confirms Giancarlo as Chairman for the CFTC

The U.S. Senate Committee on Agriculture, Nutrition, and Forestry this morning voted overwhelmingly to confirm the nomination of J. Christopher Giancarlo as Chairman for the U.S. Commodity Futures Trading Commission. He has served as Acting Chairman since January. This paves the way for his nomination to move forward to consideration on the Senate floor. Read full CFTC Press Release Here

By NIBARead article

June 29, 2017

6 min read

Illinois Financial Services “Privilege” tax?

By: Scott Kruse - Turnkey Trading Partners The State of Illinois is bankrupt. Whether anyone will acknowledge that or not is up for debate. Readers who are not familiar with the perilous state of financial affairs in Illinois need look no further than any major news publication over the last two weeks. The situation has gotten so dire that even the Chicago Tribune, Illinois’ very own reporting establishment, has gotten in on the action. Just this past week this tongue and cheek article about “Dissolving the Land of Lincoln” was run. All of this would be funny if things in Illinois weren’t so serious. So what’s a state in financial crisis to do? Raise Taxes. Except this time the taxes are intended to punish financial services firms still trying to make a buck in Illinois. That means the futures and securities industry are firmly in the State’s cross hairs. Who...

NIBA/DePaul University July Symposium

This year's NIBA/DePaul University Symposium is rapidly approaching and is shaping up to be another excellent event. Last year DePaul's rooftop deck was under construction and this year we have the opportunity to enjoy the new and improved facilities for our cocktail reception immediately following the event. In our last newsletter we proudly announced Mr. John Lothian will be the keynote speaker at DePaul this year. The full agenda has been set and is available at the below link along with the event registration information. Capacity is limited so be sure to reserve your spot in advance https://www.theniba.com/niba-event/annual-joint-niba-depaul-university-symposium/

By NIBARead article

June 29, 2017

1 min read

DOL Fiduciary Rules

Recently, a new rule went into effect at the Department of Labor that may have some implications on your business. To the extent that you recommend trading systems, CTAs or make investment recommendations to clients with retirement accounts, you should carefully review this information and possibly consult with an attorney on the implications to your business. On a high level, the rule generally requires financial professionals of all types, including brokers, financial advisors or wealth managers, who provide investment advice to retirement investors to act as fiduciaries, meaning that they must act in the best interests of their clients. It requires that brokers who recommend investments on retirement accounts provide certain disclosures regarding fees and commissions and recommend retirement products in their client’s best interests. Please refer to the below links for additional information:   http://www.investopedia.com/updates/dol-fiduciary-rule/ https://www.dol.gov/agencies/ebsa/laws-and-regulations/rules-and-regulations/completed-rulemaking/1210-AB32-2 http://www.insidecounsel.com/2016/04/18/what-does-the-department-of-labors-new-fiduciary-r

By NIBARead article

June 29, 2017

10 min read

Thinking of Starting a Fund? Here's 10 Things For You to Consider

Written by: Matt Kluchenek, Patricia McDonald & Michael Sefton, Baker&McKenzie If you've been thinking about starting a hedge fund, you've likely encountered a byzantine array of options and requirements. Sorting through these options and requirements can be overwhelming. However, planning ahead and identifying key issues can clear a path and help you efficiently achieve your goal. In this article, we identify 10 of the most common considerations that arise for emerging fund managers. The Approach: Fund or Managed Account? Initially, most traders focus on forming a fund simply because it is the most common investment vehicle. That often makes sense. However, an alternative is to offer a managed account program. In a managed account program, the client gives a limited power of attorney to the manager to manage an account in the client's name. There are pros and cons associated with both funds and managed account programs. A managed account...

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June 29, 2017

2 min read

Ask NFA - June 2017

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. If I am executing non-cleared swaps and am given poa in order to facilitate transactions will I eventually have to register as a CTA if I breach a certain threshold? NFA Registration Rule 101 defines commodity interest to include, among others, any contract, agreement or transaction subject to CFTC regulation under Sections 4c or 19 of...

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