NIBA Journal

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

November 29, 2016

Prospective Intern Profile

The following is a brief description of a DePaul student's credentials who is a prospective candidate for the NIBA Internship Program. The members portal will feature regular listings of qualified candidates to participate in the internship program:   "Current MS in Finance student at DePaul University, with expected graduation date in 2017. Has financial markets exposure through internships and coursework at school. Hardworking and adaptable person that has experience in teamwork based and fast paced environments, from previously working at a tech startup. Has passed the Series 3 Exam and proficient with Excel, Bloomberg and Morningstar Direct. Has strong interest and working knowledge of futures/options markets and managed futures programs/CTAs - would like to further that knowledge (learning technical & fundamental analysis, etc) and grow skills with this internship. This would help to achieve my goal of building a career in sales & trading/execution (and possibly marketing) at a firm...

NFA Announces New President and CEO

For Immediate Release November 18, 2016 For more information contact: Kristen Scaletta, 312-781-7860, kscaletta@nfa.futures.org Karen Wuertz, 312-781-1335, kwuertz@nfa.futures.org Thomas Sexton to succeed Daniel Roth as NFA President and CEO on March 1, 2017 November 18, Chicago—NFA announced today that its Board of Directors appointed Thomas Sexton, to serve as NFA's President and CEO, effective March 1, 2017. Daniel Roth, NFA's President and CEO, who announced his retirement in May 2016, will work closely with NFA's Board and Mr. Sexton during this important transition. This appointment is the culmination of an extensive search and selection process. In May 2016, NFA's Board of Directors authorized the formation of a search committee, chaired by Michael Dawley, NFA Board Chairman, and made up of existing Board members and other well-respected individuals with significant knowledge of the derivatives industry and NFA's important regulatory role. The search committee engaged an executive search firm with extensive experience...

Chairman Letter - November 2016

“The most successful people in life are generally those who have the best information” - Benjamin Disraeli (1804-1881) Benjamin Disraeli, 1st Earl of Beaconsfield, was the Prime Minister of Great Britain - twice. He is credited with the above quote in a speech given before Parliament during his second term. The “best information” is what NIBA is all about! This month members of the board of directors met with CFTC Commissioners and others in Washington, DC to inform them about NIBA members’ opinions on everything from proposed automated trading regulation to our concerns over the possible effects of the shrinking FCM community. A summary of those meetings appears in this newsletter. We have some follow-up work to do, and welcome everyone’s suggestions and assistance. On February 23, 2017, NIBA will hold its winter event in Newport Beach, CA. We will get the “best information” at this afternoon meeting during three...

CME Group Post Election Policy Analysis

Watch CME Group Chief Economist Blu Putnam discuss on Futures Institute the domestic and global economic policy implications of a Trump Administration. Watch Video Analysis Here Highlights Trump likely to ease regulations for banks, energy sector Healthcare to be rolled back Infrastructure spending, tax cuts likely on the agenda Fed rate hikes likely in December, three or more times in 2017 Summary The stunning victory of Republican Donald Trump that will take the businessman to the White House could lead to policy changes that ease regulations for the banking and energy sectors, with likely spending on infrastructure and tax cuts leading to a drop in net revenue that could set the stage for the Fed to hike rates in December, and possibly three or more times in 2017.

NIBA in Washington, D.C.

October 26-27, members of the Board of Directors traveled to Washington for several scheduled meetings. This is a summary and comments on those meetings. Mike Burke, Ryan Griffeth & I especially want to thank the CFTC for their attention and interest in NIBA topics. At each of our meetings, we were warmly welcomed, respected -- it was clear NIBA is an important part of the professional derivatives community. Commodity Markets Council: This association addresses industry issues focusing on agriculture, energy, finance, infrastructure and transportation. Our discussion, with Gregg Doud, President of the CMC, was around issues which our associations have in common such as AT registration, and the effect the coming election on the make-up of the Commission and direction of regulation. CFTC Commissioner Bowen’s Staff: We discussed possible amendments to Reg AT such as minimum volume and direct market access. (A subsequent meeting of the Commission on Nov. 4,...

NIBA SoCal Conference - Feb 2017

Mark your calendar now for the NIBA winter event February 23 at the Newport Beach, CA Marriott as a little bit of Chicago and New York comes to Southern California! The NIBA regulary holds an annual spring meeting in New York City and a fall event in Chicago - the centers of futures trading in the U.S. In distant Southern California the futures business is spread out over an immense landscape – creating a “vacuum” of interpersonal relationships and perhaps too, a sense of detachment from the industry. The NIBA SoCal conference successfully addresses this situation. Attendees are afforded the opportunity to hear a panel of experts on important topics critical to the growth and success of their businesses. The closing networking reception will provide the chance for participants to interact with their peers from across the southland, exchanging ideas, discussing concerns, and trading professional experiences, thus creating greater opportunities,...

By NIBARead article

CFTC Commissioner Giancarlo on Proposed Reg AT

October 31, 2016

1 min read

CFTC Commissioner Giancarlo on Proposed Reg AT

Please take a moment to watch the video below of CFTC Commissioner Christopher Giancarlo's thoughts and concerns about the CFTC's proposed Reg AT: https://www.youtube.com/watch?v=czFDOnsNoIM

NIBA Board of Directors Election

The NIBA's Board of Director's election is upon us. We have one member up for re-election this year. Per the bylaws of the NIBA members must be notified of said election prior to the first day of November of the election year and voting must be completed prior to the last calendar day of the election year. This article serves as a reminder for members to look out for a special announcement from the NIBA regarding the upcoming election and how to participate. **Please note only current members are eligible to vote**

Housekeeping, Reminders and Updates October 2016

  COMMODITY FUTURES TRADING COMMISSION Swap Dealer Registration De Minimis Exception In a press release issued October 13, 2016 (Release: PR7471-16) the Commodity Futures Trading Commission (“CFTC”) announced the approval of an order establishing de minimis threshold phase-in termination date pursuant to CFTC Regulation 1.3(ggg)(4)(ii)(C)(1), (the “Order”). The Order delays the de minimis threshold phase-in termination date by one year. The Order formalized December 31, 2018 as the new swap dealer registration de minimis threshold phase-in termination date. With the approval of the Order, the de minimis threshold will remain at $8 billion until December 31, 2018 instead of decreasing to $3 billion on December 31, 2017, as originally intended. The purpose of the Order is to provide the CFTC with additional time to consider this critical issue and to provide certainty to market participants. As per this Order, and absent further action by the CFTC, the phase-in period would...

By NIBARead article

October 26, 2016

4 min read

Ask NFA--October 2016

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. "I was wondering if you could guide me to any more sources on the topic of a CTA compensating a friend or current client for introducing the CTA to a new client. Assuming no brokerage commission sharing, no violations of marketing rules in terms of being deceptive, not disclosing risks, etc., is it then OK to...

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